Delta Apparel said its wholly owned subsidiary, To The Game, has acquired substantially all assets of Salt Life Holdings, including all of its domestic and international trademark rights in the Salt Life brand. Wells Fargo amended an asset-based secured revolving credit facility to facilitate the transaction.

The purchase price for the transaction consists of $15 million in cash, two promissory notes in the aggregate principal amount of $22 million, and an additional payment contingent on certain performance targets being met with respect to sales of Salt Life products in 2019. The company financed the cash portion of the purchase price through an amendment to its asset-based secured revolving credit facility.

Salt Life will be operated as a division of To The Game, where it has been managed under a license agreement since 2011, growing annual sales from $6 million to over $20 million.

Jeff Stillwell, president of To The Game, said, “The experience we have had with the growth of Salt Life over the past two years gives us great confidence in the future potential of the brand. Our Jacksonville-based team does an outstanding job servicing our customers and promoting the Salt Life brand. The flagship Salt Life retail store, which opened in Jacksonville Beach, FL, during 2012, serves as a vision for retail customers to see product placements they can utilize in their stores. It also serves as a direct-to-consumer laboratory as we test new product concepts for broader retail distribution.”

“The Salt Life acquisition opens up another exciting chapter in the history of Delta Apparel Inc.,” said Robert W. Humphreys, chairman and CEO. “This continues our strategy of building lifestyle brands that can take advantage of our creative capabilities, vertical manufacturing platform and international sourcing competencies. Since becoming the exclusive licensee for Salt Life apparel and other categories in 2011, Delta Apparel has broadened its core consumer appeal by developing authentic and compelling products that cater to a host of ocean and beach enthusiasts. During this time Salt Life has also expanded geographically from a nearly exclusive Florida brand to now having products available to consumers in over 1,500 retail doors from Texas up the coast to the Northeast.”

Delta Apparel, along with its operating subsidiaries, M. J. Soffe, Junkfood Clothing Company, To The Game, and Art Gun, is an international design, marketing, manufacturing, and sourcing company that features a diverse portfolio of lifestyle basic and branded active wear apparel and headwear.

Salt Life is a lifestyle brand that embraces those who love the ocean and everything associated with living the “Salt Life.”