Delta Apparel Inc. -- a Duluth, Ga.-based manufacturer of branded and private label activewear -- has signed a letter of intent to acquire Wendell, N.C.-based HPM Apparel Inc., a designer and marketer of decorated casual apparel and doing business as The Cotton Exchange. Founded in 1984, The Cotton Exchange sells mostly to college bookstores, the U.S. military and other retailers under "The Cotton Exchange," "TCX" and "Just For Us" brands. The company will maintain its headquarters and operations in Wendell, and its approximately 290 employees will retain their jobs after the acquisition. 

"We are excited about the acquisition of The Cotton Exchange as it continues our strategy of growing the company's business within the college bookstore market and further strengthens our military and retail channels," said Robert W. Humphreys, chairman and CEO, Delta Apparel. "In addition, this business provides us additional U.S. screen print and embroidery capacity, further enhancing our speed to market initiatives. Delta Apparel is eager to begin working with the existing management team to continue to grow "The Cotton Exchange" as well as the company's other brands."

The acquisition will include associated inventory, accounts receivables, and fixed assets of HPM Apparel's business as well as assumption of certain liabilities. Delta Apparel expects The Cotton Exchange will add approximately $25 million in sales.

July 6, 2010