Phoenix Footwear Group has completed the acquisition of Altama Delta Corporation. Altama, a designer, manufacturer and distributor of high performance combat and tactical boots for U.S. and foreign militaries, government agencies and the commercial sector, generated revenues of $40 million for the 12 months ended April 3, 2004. The Company expects that the acquisition will be accretive to earnings per share. The Company will update its financial guidance to reflect the acquisition when it reports its second quarter 2004 financial results.
The Company also announced that Altama has been notified by the Defense Logistics Agency that the Department of Defense (DoD) intends to exercise its option to renew its current contract with Altama for one year for the manufacture of hot weather infantry boots. The government has not yet specified a quantity of boots that it plans to order.
James R. Riedman, Chairman of Phoenix Footwear, commented, “A profitable company with strong sales performance in an attractive niche market, we are thrilled to add Altama to our portfolio of footwear and apparel brands. In addition, we recently announced the appointment of Glen Becker to the position of Vice President and General Manager of Altama. Glen is a well-respected and proven executive in this segment, having served in senior management roles at Wolverine World Wide, Inc.'s Bates Footwear Division and at Weinbrenner Shoe Company. We welcome Glen, as well as all of the employees of Altama to the Phoenix Footwear team.”
Altama Footwear has been a prime contractor to the U.S. DoD for 35 consecutive years. Altama markets and distributes its products to federal, state and local agencies, military schools, law enforcement agencies and consumers, among other channels, throughout the U.S. as well as in 70 countries. Launched in 1991, Altama's non-DoD, commercial business currently represents approximately 35% of Altama's net sales.
