Delta Apparel, Inc. has signed an agreement with Parkdale America, LLC to sell its yarn manufacturing plant in Edgefield, South Carolina.
In conjunction with the transaction, we will enter into a five-year agreement with Parkdale to supply our yarn requirements. We expect to close the sale of the facility by the end of December. Parkdale plans to include the Edgefield plant in its plans to modernize their production equipment dedicated to open end yarns.
Robert W. Humphreys, President and CEO, commented, “We are confident that the sale of the Edgefield Plant to Parkdale will be positive for the employees in the facility, the Edgefield community, Parkdale America, and Delta Apparel. Over the past year, we have been evaluating our long-term yarn supply options and believe this strategy accomplishes our goals. The transaction will allow us to reduce our working capital investment and eliminate our need for future capital expenditures in yarn manufacturing. The supply agreement with Parkdale allows us to acquire yarn that has been manufactured from the most modern equipment available. We expect to use the proceeds from the sale of the plant and the reduction in working capital needs to reduce our debt and continue our investment in our marketing and distribution strategies that should grow our overall business.”
