Superior Uniform Group, Inc. (SGC: Quote) announced the acquisition of substantially all of the assets of HPI Direct, Inc. of Alpharetta, Ga., effective today, July 1, 2013.
The company stated that the purchase price for the transaction consists of about $32.5 million in cash, subject to adjustment, the issuance of approximately $2.3 million in shares of Superior Uniform Group's common stock, the potential future payment of up to $7.2 million in additional contingent consideration through 2017, and the assumption of certain liabilities of HPI Direct.
The transaction also includes the acquisition of the corporate offices and warehouse distribution facility from an entity related to HPI Direct, Superior Uniform said.
Along with the closing of the acquisition, Superior renewed its $15 million revolver agreement and entered into a new term loan for $30 million.
Both credit facilities carry five year terms and variable interest rate of LIBOR plus 0.95%.
The company said that HPI Direct will continue to service its customers from its location in Alpharetta, Georgia and will operate as a division of Superior Uniform Group.
by RTT Staff Writer
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