Duck Hunting

Duck Head Apparel Co. (Winder, Ga.), producer of men's and boys'casual sportswear products and operator of 25 outlet retail stores, will be sold to Tropical Sportswear International Corp. (Tampa, Fla.). TSI will acquire 100 percent of Duck Head's common stock pursuant to a tender offer and subsequent merger.

TSI markets and manufactures branded and private brand men's and women's casual and dress sportswear. Its brands include Savane, Farah, Bay to Bay, Flyers, The Original Khaki Co., Two Pepper, and Authentic Chino Casuals. Licensed brands include Bill Blass, John Henry, Van Heusen and Victorinox.

“Duck Head offers an outstanding strategic fit for us,” said TSI chairman and ceo William W. Compton. “Duck Head produces similar lines of pants and shorts which fit well within our operating blueprint. Duck Head also has a well-established complementary line of men's and boys'casual shirts, which we plan to expand through leveraging our extensive distribution channels. In addition, we have strong relationships with Duck Head's major customers and we see excellent opportunities to expand key wholesale and licensing programs.”

“We expect that Duck Head's operations will be accretive to our earnings and cash flow for fiscal 2002,” added TSI cfo Michael Kagan. Duck Head expects net sales of approximately $45 million for the year ending June 30, 2001.

After consummating the merger, TSI intends to continue Duck Head's pending efforts to sell its headquarters and distribution center in Winder, and will evaluate the consolidation of Duck Head's production facilities in Costa Rica into its existing network of contract manufacturers. In addition, TSI expects to retain selected duck Head management and operating personnel. The transaction is expected to close in the third calendar quarter of 2001 (TSI's fourth fiscal quarter of 2001).