Delta Apparel, Inc. received an unsolicited offer to purchase its Salt Life business unit. The company’s Board of Directors has engaged Baird as the company’s financial advisor.
“Our Board of Directors and management team are committed to maximizing value for Delta Apparel shareholders, and we believe it is in their best interests to conduct a thorough review of strategic options for our Salt Life business given the widespread interest in it,” said Bob Humphreys, chairman and CEO, Delta Apparel, Inc.
“The Salt Life team has done an excellent job in taking what was essentially a small regional brand with a primarily wholesale business when we acquired it in 2013 and growing it into a highly profitable business with over $60 million in revenue, a consumer base stretching across the United States and internationally, and a variety of new go-to-market strategies, product categories and revenue channels,” continued Humphreys.
Humphries said Salt Life products are sold through over 1,700 wholesale doors across 48 states and direct-to-consumer via a growing e-commerce site, as well as 25 branded retail stores spanning the U.S. coastline from California to Florida to New York.”
Delta Apparel said it does not intend to comment on the above-referenced process or disclose additional developments until its Board of Directors approves a specific transaction or, otherwise, concludes its review of strategic alternatives.
Delta Apparel acquired the Salt Life brand in 2013.
In Delta’s latest fiscal year ended October 22, 2022, Salt Life’s sales were $60.3 million, up 21 percent year over year with expansion across wholesale, retail and e-commerce channels. Salt Life ended the fiscal year with 21 stores in operation, opening eight locations during the year with plans to open six to eight in the current fiscal year.
In the fiscal nine months through July 31, Salt Life’s sales were $46.5 million compared to prior year period net sales of $46 million.
Photo courtesy of Salt Life
