SPINOFFS FOR DELTA WOODSIDE
NEW YORK — Delta Woodside Inc. has completed the spinoff of its T-shirt and Duck Head apparel businesses.
As reported, Delta Woodside, based in Greenville, S.C., said earlier this year that it planned to spin off Delta Apparel Co., which makes T-shirts and sweatshirts, and Duck Head Apparel Co., a maker of women’s and men’s branded apparel, to shareholders as two separate companies.
With the spinoff, Delta Woodside’s largest operation, Delta Mills Marketing Co., which makes cotton fabrics, becomes the sole operating business of the company.
Under the spinoff, all Delta Woodside shareholders received one Delta Apparel share and one Duck Head share for every ten Delta Woodside shares they own. Fractional shares were paid in cash. The move was designed to increase shareholder value.
On Wednesday, shares of Delta Woodside closed at 1 1/2, down 1/8; Delta Apparel, 9 3/16, down 3/16 and Duck Head Apparel, 1 3/4, down 1/4.
Delta Woodside (DLW) continues to be traded on the New York Stock Exchange, while Delta Apparel (DLA) and Duck Head (HDA) are traded on the American Stock Exchange.
In the third quarter ended April 1, Delta Mills Marketing Co. generated operating income of $5.2 million on sales of $62.1 million; Delta Apparel achieved operating profits of $2.9 million on sales of $27.3 million; and Duck Head showed an operating loss of $400,000 on sales of $13.9 million.
In connection with the spinoffs, Delta Woodside has elected new executive officers. William Garrett has been named president and chief executive officer of the parent company.
He has been president of Delta Mills since before its 1986 acquisition by Delta Woodside and has 38 years of experience in the textile industry.
William Hardman Jr. has been elected vice president, chief financial officer, treasurer and secretary, and Donald Walker has been appointed vice president, controller and assistant secretary for the parent company.
Previously, Hardman was vice president of administration for Delta Mills Marketing, a post he’d held since 1986, and Walker had been controller of Delta Mills since 1987.
As president and chief executive officer of Delta Woodside, Garrett succeeds Erwin Maddrey, who resigned those posts effective June 30. Maddrey continues as a director of the firm and also will serve as a director of Delta Apparel and Duck Head.