Delta Apparel Inc. announced that DTG2Go LLC, the company’s wholly-owned subsidiary, has acquired substantially all of the assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services, a leading provider of digital print services, for $12 million.
The acquisition is expected to increase the company’s fiscal 2019 revenue by approximately $15 million and be immediately accretive to diluted earnings per share. The company will provide additional details regarding the transaction on its fourth quarter and fiscal year 2018 earnings conference call which is scheduled for Thursday, November 15, 2018.
Deborah H. Merrill, Delta Apparel’s chief financial officer and president, Delta Group, commented, “We look forward to the opportunities the acquisition of SSI Digital Print Services provides our company, including increasing our digital print capacity and enhancing our strategic footprint so that we now service over 90 percent of the U.S. population with one-to-two-day shipping.”
Merrill further stated, “Our vertically-integrated platform utilizing Delta Apparel’s broad range of blank garments provides customers with a seamless supply chain for on-demand, digitally printed garments fulfilled directly to their consumers. This level of customer offering and consumer reach is unmatched in the digital print space. We believe the on-demand market is in a rapid growth stage, and we are committed to being the leading digital print and fulfillment service provider in this evolving industry.”
“We have known the leadership team of DTG2Go for a long time and have always admired the innovative business model they operate,” said Jay Butterfield, owner of SSI Digital Print Services. “I am pleased that the SSI team is now a part of DTG2Go and believe the transaction provides great synergies for the company, our customers and our employees.”
DTG2Go LLC is a leader in the direct-to-garment printing and fulfillment marketplace with one of the most highly automated factory processes for delivering on-demand, digitally printed apparel of all types, as well as other products. Built upon a robust backend digital supply chain and infrastructure to scale with large company mindsets, DTG2Go supports e-commerce companies as well as the ad specialty, promotional products and retail marketplaces. Orders ship from DTG2Go within 24 to 48 hours to consumers in the United States and 100 countries worldwide.
Delta Apparel Inc., along with its operating subsidiaries, Salt Life LLC, M. J. Soffe LLC and DTG2Go LLC, features a diverse portfolio of lifestyle basic and branded activewear apparel, headwear and related accessories.
