Delta Apparel Inc. — a Duluth, Ga.-based manufacturer of branded and private label activewear —
has signed a letter of intent to acquire Wendell, N.C.-based HPM Apparel Inc., a designer and
marketer of decorated casual apparel and doing business as The Cotton Exchange. Founded in 1984,
The Cotton Exchange sells mostly to college bookstores, the U.S. military and other retailers under
“The Cotton Exchange,” “TCX” and “Just For Us” brands. The company will maintain its headquarters
and operations in Wendell, and its approximately 290 employees will retain their jobs after the
acquisition.
“We are excited about the acquisition of The Cotton Exchange as it continues our strategy of
growing the company’s business within the college bookstore market and further strengthens our
military and retail channels,” said Robert W. Humphreys, chairman and CEO, Delta Apparel. “In
addition, this business provides us additional U.S. screen print and embroidery capacity, further
enhancing our speed to market initiatives. Delta Apparel is eager to begin working with the
existing management team to continue to grow “The Cotton Exchange” as well as the company’s other
brands.”
The acquisition will include associated inventory, accounts receivables, and fixed assets of
HPM Apparel’s business as well as assumption of certain liabilities. Delta Apparel expects The
Cotton Exchange will add approximately $25 million in sales.
July 6, 2010
