Delta Apparel, Inc., in a regulatory filing, said it expects to receive net proceeds of $23 million from the sale and long-term leaseback of its approximately 35-acre campus in Fayetteville, NC. The buyer is RH Dunn, LLC.
Delta intends to use the proceeds to repay outstanding borrowings under its asset-based revolving credit facility. The company expects to complete the transaction on or about January 15, 2024.
The company also reported its plans to continue operations at the Fayetteville campus uninterrupted and, as a condition for the transaction’s closing, will enter into a long-term lease agreement with RH Dunn. The lease agreement will have an initial term of ten years, with two five-year renewal options.
The facility has 550,000 square feet of industrial space used across various business units for manufacturing, decoration, distribution, and other activities.
Delta also said it recently entered into an agreement for the sale and long-term leaseback of its approximately 25-acre property in Clinton, TN, with about 164,000 square feet of distribution space used in the company’s Activewear business. Delta expects to receive roughly $6 million in net proceeds to reduce debt. The transaction is expected to be completed in January 2024. Delta also plans to continue operations at the Clinton property under a long-term lease agreement.
Delta makes core activewear and lifestyle apparel under the Salt Life, Soffe and Delta brands. It also owns the DTG2Go direct-to-garment digital print business.
