DTG2Go LLC, a wholly-owned subsidiary of Delta Apparel Inc, a provider of basic and branded apparel, headwear and related accessories, has acquired substantially all of the assets of Silk Screen Ink, doing business as (DBA) SSI Digital Print Services. The company is a provider of digital print services and its assets were acquired for US$12m.
The acquisition is expected to increase the company’s fiscal 2019 revenue by around US$15m 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 15 November 2018, the company says.
Deborah H Merrill, Delta Apparel’s chief financial officer and president of Delta Group, comments: “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% of the US population with one to two-day shipping.”
Merrill continues: “Our vertically integrated platform utilising 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 fulfilment 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,” says 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 operates in the direct-to-garment (DTG) printing and fulfilment 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, according to the company. Delta Apparel Inc, along with its operating subsidiaries, Salt Life, LLC, M J Soffe, LLC, and DTG2Go LLC, is an international design, marketing, manufacturing and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel, headwear and related accessories. The company specialises in selling casual and athletic products across distribution tiers, including specialty stores, boutiques, department stores, mid-tier and mass chains, and the US military. The company's operations are located throughout the US, Honduras, El Salvador, and Mexico and it employs around 7,500 people worldwide.
