Tropical Sportswear Buying Duck Head

ATLANTA-A 134-year-old apparel name will have a new proprietor shortly if a $20.8 million cash-and-stock deal goes through between Duck Head Apparel Co. of suburban Winder, GA and Tampa, FL-based Tropical Sportswear International Corp.

Tropical plans to make a cash tender offer to Duck Head shareholders of $4.75 per share for the firm’s 2.9 million outstanding common shares, which the Florida firm values at $16 million. Tropical would also assume Duck Head’s debt of $4.8 million.

Duck Head had a cash balance of $5 million as of June 2 of this year, according to Tropical’s statement filed with the US Securities and Exchange Commission. For the year ending June 30, Duck Head will report net sales of $45 million.