Today, Delta Apparel Inc. announced that its wholly owned subsidiary had bought all assets of Salt Life Holdings LLC. The acquisition of To The Game LLC included domestic and international trademark rights in Salt Life brand.
The purchase price for the deal was valued USD15 million in cash. It also included two promissory notes amounting USD22 million. Furthermore, it also included additional contingent payment based on performance targets with respect to Salt Life product sales in 2019. Delta Apparel's acquisition was financed through an amendment in its asset-based secured revolving credit facility.
Salt Life was founded in 2003 in Florida. The brand had widespread appeal with ocean enthusiasts worldwide. The company had grown its annual sales to USD20 million since its first merchandise offerings in 2006. Salt Life also distributes its products in sporting goods retailers, surf shops, department stores and specialty stores.
Robert W. Humphreys, Chairman and Chief Executive Officer of the company said, "While this acquisition will have minimal impact on our revenue and earnings in the upcoming year, it will be a key growth initiative in the future. As owner of the brand we will greatly increase our investment in consumer advertising and point-of-sale branding. We look forward to the many opportunities we see for strong continued growth with the Salt Life lifestyle brand."
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