Delta Apparel gains all assets of Junkfood Clothing
24 Aug '05
3 min read
High quality branded and private label activewear apparel marketer, manufacturer and distributor Delta Apparel Inc announced that it has acquired substantially all of the assets of Liquid Blaino Designs, Inc. d/b/a Junkfood Clothing.
The purchase price for the transaction consists of $20 million of cash (subject to a post-closing adjustment based on the actual working capital purchased), a $2.5 million seller promissory note, and contingent payments with respect to each of the four fiscal years following closing, payable if certain performance targets are met. The Company financed the cash portion of the purchase price through an amendment to its asset-based secured revolving credit facility. The Sage Group, LLC served as Junkfood Clothing's financial advisor in connection with the sale.
Liquid Blaino Designs d/b/a Junkfood Clothing is owned by designers Natalie Grof and Blaine Halvorson. In 1998 the two began a t-shirt line with nostalgic licenses such as Twister, Candy Land, and My Little Pony. Over the past seven years, they have experienced impressive growth with their innovative designs and great sense of style. For the twelve months ended June 30, 2005, Junkfood Clothing had sales of approximately $27 million. Delta Apparel expects the Junkfood acquisition to add approximately $33 to $38 million in sales and $0.30 to $0.35 in earnings per share for the fiscal year ended July 1, 2006.
Robert W. Humphreys, President and CEO, commented, "They look forward to having Junkfood Clothing join their expanding business operations. The purchase of Junkfood keeps with their strategy of acquiring profitable apparel operations that expand their channels of distribution. The current owners and management team at Junkfood will continue to operate the business from its current location in Los Angeles, California. All of us at Delta Apparel look forward to working with them as they continue to build the Junkfood brand."
marketing@alchempro.com
