Delta Apparel, Inc. (PPAI 188431) has announced that through its Art Gun, LLC, subsidiary, the Greenville, South Carolina-based supplier has acquired the assets of Teeshirt Ink, Inc., which does business as DTG2Go, a premium provider of digital, direct-to-garment printed products. Delta Apparel plans to change the name of Art Gun, LLC to DTG2Go, LLC and market the consolidated digital print business under the DTG2Go brand name.

The integrated business will operate from multiple locations in Florida as well as a location in Nevada serving the western United States, with immediate plans to begin production in Delta Apparel’s Fayetteville, North Carolina, facility to service the northeastern U.S. The acquisition nearly doubles Art Gun’s revenue and capacity; broadens its product line into posters, stickers and other items; and further enhances service levels through quicker delivery capabilities both across the United States and in over 100 countries worldwide.

“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,” says Robert W. Humphreys, chairman and chief executive officer of Delta Apparel, Inc. “We see the digital print model revolutionizing the way traditional retailers, e-retailers, and the ad specialty industry conduct business. Over the past five years, DTG2Go has achieved notable success, and we are excited to have the talented DTG2Go personnel as part of our team focused on further increasing our share of this growing market. We plan to continue to invest in equipment and geographic expansion and look forward to the many opportunities for strong growth at DTG2Go.”

The purchase price for the transaction consists of $16.35 million in cash and additional payments contingent on certain performance targets. Delta Apparel expects this acquisition to immediately grow earnings and increase revenue by approximately $7 million during the remainder of fiscal year 2018. With the full year benefit of the acquisition in fiscal year 2019, the contribution from DTG2Go is expected to generate around $20 million in new revenue.