GREENVILLE, S.C.—Delta Apparel subsidiary DTG2Go acquires the entire assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services. The purchase price is $12 million, according to Delta.
“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 percent of the U.S. population with 1 to 2-day shipping,” says Deborah H. Merrill, chief financial officer and president at Delta Apparel.
Delta expects the acquisition to increase the company’s fiscal 2019 revenue by approximately $15 million and the company says the purchase will be immediately accretive to diluted earnings per share.
“We have known the leadership team of DTG2Go for a long time and have always admired the innovative business model they operate,” states 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.”
With locations in Iowa and Colorado, SSI offers multiple services in the fulfillment and graphics markets including direct-to-garment and large-format printing as well as order integration API. DTG2Go meanwhile utilizes Delta Apparel’s selection of blank garments to operate a supply chain that offers on-demand, digitally-printed apparel.
“We believe the on-demand market is in a rapid growth stage and we are committed to being the leading digital print and fulfillment service provider in this evolving industry,” adds Merrill.
The acquisition marks a rapid year of growth for the subsidiary. In June 2018, DTG2Go opened its fourth manufacturing and fulfillment location Fayetteville, North Carolina. Delta says it plans to provide additional details about the transaction on its fourth quarter and fiscal year 2018 earnings conference call, scheduled for November 15, 2018.
For more information, visit https://www.deltaapparelinc.com.