Delta Apparel‘s board of directors has enlisted financials services company, Baird as its financial advisor to evaluate the Salt Life purchase offer. The company has not disclosed who made the offer or any financial details.
The US apparel group states there can be no assurances as to the timing, terms or structure of any potential transaction or that a transaction will consummate.
Delta Apparel chairman and CEO Bob Humphreys explains: “Our board of directors and management team are committed to maximising value for Delta Apparel shareholders, and we believe it is in their best interests to conduct a thorough review of strategic options for our Salt Life business given the widespread interest in it.”
He points out the Salt Life team has done an excellent job in taking what was “essentially a small regional brand with a primarily wholesale business” when Delta Apparel acquired it in 2013 and growing it into a highly profitable business with over $60m in revenue.
He explains it now has a consumer base stretching across the United States and internationally, and a variety of new go-to-market strategies, product categories and revenue channels.
Humphreys continues: “Today, Salt Life products are offered in over 1,700 wholesale doors across 48 states and direct-to-consumer via a growing eCommerce site as well as 25 branded retail stores spanning the U.S. coastline from California to Florida to New York.”
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Delta Apparel says it does not intend to comment on the process or disclose additional developments until its board of directors approves a specific transaction or otherwise concludes its review of strategic alternatives.