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Delta Apparel Sells Yarn Plant To Parkdale America

Delta Apparel Inc., Duluth, Ga., has completed the sale of its Edgefield, S.C., yarn plant to Parkdale America LLC, Gastonia, N.C., for $10 million.

Delta also entered into a five-year agreement with Parkdale whereby Delta and its subsidiary M.J. Soffe Co. will purchase from Parkdale all yarn required for their apparel lines. "The sale of the Edgefield Plant completes our long-term yarn strategy of obtaining high-quality, low-cost yarn while reducing our working capital investment and eliminating our need for future capital expenditures in yarn manufacturing," said Robert W. Humphreys, president and CEO, Delta Apparel. "Our business partnership with Parkdale through the supply agreement will allow us to acquire quality yarn that has been manufactured [using] the most modern equipment available. We will use the proceeds from the sale of the plant and the reduction in working capital needs to reduce our debt and continue our investment in our marketing and distribution strategies that should grow our overall business."

February 2005




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