MV Sport Acquires Headwear Brand
Paid About $14.5 Million In Cash
Supplier MV Sport (asi/68318) announced it has purchased headwear and apparel brand The Game from Delta Apparel, Inc. (asi/49172). The Game, founded in 1986, is a recognized brand in the college and team dealer market. MV Sport paid approximately $14.5 million in cash at closing with an additional $500,000 for other unrelated conditions.
“We are excited to be adding The Game to our MV Sport business,” said Josh Peyser, president of MV Sport. “The Game is a leading headwear brand with strong consumer recognition in the collegiate and team dealer markets, and combining it with our MV Sport product lineup gives us a formidable presence in all the markets we serve. We are looking forward to integrating The Game’s highly professional sales, customer support and design teams into the MV Sport family.”
MV Sport’s purchase includes The Game’s business with college bookstores and team dealers, as well American Threads, a full line of Made-in-USA sweats and tees. Delta did not sell The Game’s accounts receivable and certain undecorated apparel inventory, which the company expects to sell for approximately $6 million. Delta bought the business in 2009 for $5.7 million, and expects to realize a pre-tax gain of approximately $6 million.
Delta Chairman and CEO Robert W. Humphreys said the sale would further strengthen the supplier’s balance sheet and allow it focus on areas of the business that are more strategic for the company’s long-term goals. He added that the company’s Salt Life brand and corporate business operating within The Game won’t be affected. “While the sale has obvious benefits for Delta Apparel, including allowing us to invest more capital in expansion strategies for Salt Life and our other brands,” Humphreys said, “we believe that The Game’s branded products, which include the ‘Bar’ and ‘Circle’ trademarks, will make a strong addition to MV Sport’s wide range of custom decorated apparel sold in college bookstores and other markets.”