Kornit Digital Ltd. (KRNT) announced it has received an order from DTG2Go, a Delta Apparel, Inc (DLA) company and leader in the direct-to-garment printing and fulfillment marketplace. The order follows several months of beta-testing of the recently released Kornit Atlas system by DTG2Go, during which Kornit was able to showcase the enhanced features of the most advanced industrial direct-to-garment solution available on the market. Key features of the Atlas include high volume throughput, attractive cost of ownership and featuring the new NeoPigment Eco-Rapid inkset specifically designed for sustainability and retail-quality digital textile printing. Per the agreement, DTG2Go will take delivery of 10 Atlas systems in 2019, along with a significant number of HD upgrades for DTG2Go's existing Kornit Avalanche systems.
Delta Apparel downgraded to Neutral at Roth Capital on near-term pressures. As previously reported, Roth Capital analyst Dave King downgraded Delta Apparel to Neutral from Buy, with a $26 price target, given near-term pressures and following the recent run-up in shares. The analyst notes that the company's revenue and EPS exceeded preliminary results, while management said margin pressures from higher raw material costs and Private Label program startup costs should continue into Q2.
Delta Apparel announced that DTG2Go, LLC, its wholly-owned subsidiary, has acquired substantially all of the assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services, a leading provider of digital print services, for $12M. The acquisition is expected to increase the company's FY19 revenue by approximately $15M and be immediately accretive to diluted earnings per share.
Delta Apparel announced that its board has approved a new authorization under the company's stock repurchase program for the repurchase of up to an additional $10M of the company's outstanding common stock, bringing the total amount authorized under the program to $60M.
Delta Apparel announced that Art Gun, its wholly-owned subsidiary, has acquired substantially all of the assets of TeeShirt Ink d/b/a DTG2Go, a premium provider of digital, direct-to-garment printed products. Art Gun's acquisition of the DTG2Go business makes it a clear market leader in the direct-to-garment digital print and fulfillment marketplace and accelerates Art Gun's geographic expansion. 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 our Fayetteville, North Carolina facility to service the northeastern United States. With this acquisition, Art Gun nearly doubles its 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. Delta Apparel plans to change the name of Art Gun to DTG2Go and market the consolidated digital print business under the DTG2Go brand name. The purchase price for the transaction consists of $16.35M in cash and additional payments contingent on certain performance targets. Delta Apparel expects this acquisition to be immediately accretive to earnings and increase revenue by approximately $7M during the remainder of FY18. With the full year benefit of the acquisition in fiscal year 2019, the contribution from DTG2Go is expected to generate around $20M in incremental revenue while being approximately 25c accretive to per share earnings.