Delta Apparel's Art Gun acquires DTG2Go

By

Robin Driver

Published
Mar 12, 2018

Delta Apparel-owned direct-to-garment printing company Art Gun, has acquired substantially all the assets of TeeShirt Ink Inc., which operates under the name of DTG2Go. The deal sets the combined businesses up as a clear market leader in the direct-to-garment printed apparel sector and accelerates Art Gun’s geographic expansion.

 
The acquisition means that Art Gun, LLC, which Delta Apparel plans to rename “DTG2Go, LLC”, close to doubles its revenue and capacity, and widens its product line to include posters, stickers and other articles. The deal will also allow the company to improve its services thanks to quicker delivery capabilities both in the US and abroad.
 
The new integrated entity will operate through a number of facilities in California and a location in Nevada to serve the western United States. Plans are also in place to begin production in the company’s Fayetteville, North Carolina facility, allowing the new business to also serve the Northeast.

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“Art Gun’s acquisition of the DTG2Go business is another example of our continued focus on areas of our business where we expect high growth opportunities”, stated Robert W. Humphreys, Delta Apparel chairman and CEO, in a release. “We see the digital print model revolutionizing the way traditional retailers, e-retailers, and the ad-specialty industry conduct business.”

Commending DTG2Go’s success in the past five years, Humphreys went on to explain, “We plan to continue to invest in equipment and geographic expansion, and look forward to the many opportunities for strong growth at DTG2Go.”
 
Art Gun has one of the most highly automated factory processes in the direct-to-garment printing and fulfillment marketplace and ships to customers in more than 100 countries worldwide.

Its parent company, Delta Apparel, Inc. designs, manufactures and markets a wide range of lifestyle basic and branded activewear apparel, headwear and related accessories, with its subsidiaries M. J. Soffe, Salt Life and Art Gun. The company’s products are distributed through various distribution tiers including department stores, mid-tier and mass chains, as well as the US military, and can also be purchased directly online through branded e-commerce sites. Delta currently employs around 7,500 people and operates in the US, Honduras, El Salvador, and Mexico.
 
Delta Apparel expects the acquisition of DTG2Go to increase revenue by some $7 million during the rest of fiscal 2018 and produce $20 million in incremental revenue in fiscal 2019.
 
The deal included a purchase price of $16.35 million in cash, with additional payments to be made contingent on certain performance targets.