Superior Uniform Group announced the acquisition of substantially all of the assets of HPI Direct of Alpharetta, GA. Since 1993, HPI Direct has built a stellar reputation for quality and responsiveness as a privately owned company specializing in the design, manufacture and distribution of uniforms to major domestic retailers, foodservice chains, transportation and other service industries throughout the United States.

The purchase price for the transaction consists of approximately $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. Concurrent with the closing of the acquisition, Superior renewed its $15 million revolver agreement and entered into a new term loan for $30 million with Fifth Third Bank (see filing). Both credit facilities carry five year terms and variable interest rate of LIBOR plus 0.95%.

View the SEC filing which names Fifth Third as Superior's lender.  

HPI Direct will continue to service its customers from its location in Alpharetta, Georgia and will operate as a division of Superior Uniform Group. The three principals of HPI Direct, Kirby Sims, Fred Hill and Richard Sosebee, will remain with the division under long-term agreements.