- The two operations will have combined revenues of over $2.4 million annually
- The Net revenues after economies of scale will be over $500,000 annually.
November 14, 2017West Palm Beach, FL– Bahamas Development Corporation (OTC: BDCI) successfullyclosed on its second Asset Purchase Agreement (APA) of 2017. The Company hasacquiredtwo US based wholesale PerformanceWear apparel companies each servicing different markets with minimal overlap.
Incite Performance Wear (“IPW”) is now a wholly owned subsidiary of BDCI. IPW is a full package apparel manufacturing company that specializes and prides themselves in “MADE IN THE USA” products. These products are 100% moisture wicking mesh polyester performance wear combiningUPF 40 Sun Protection embellished utilizing cutting edgeDye Sublimation technology. The Company’s Full Package Apparel Manufacturing Services also includes, but are not limited to, Creative Services, Dye Sublimation Printing, Cut and Sew Operations, Custom Packaging/Labeling and Fulfillment.The company manufactures private branded and co-branded apparel for many fishing, marine, diving, agricultural, hospitality business, team sports, special events and military customers reaching over 500 clients throughout the US and Caribbean.
Unlike Under Armor, Reebok, and Nike; Bahamas Development Corporation (OTCQB: BDCI) has incorporated proprietary Anti-Snag and MicroVent Technology into their unique Performance Wear fabric, which not only prevents the garment from developing ugly snags and pulls that renders other garments useless, it provides for enhanced breathability. These features are a giant step above the majors in this space.
BDCI has been able to acquire these two separate Performance Wear apparel companies with combined revenues that should exceed $2.4 million for 2018, with zero toxic funding. The Company acquisitions were closed through the use of traditional bank financing from Wells Fargo and cash to finance the purchases. Wells Fargo extended an additional $100,000 credit line on top of the purchase price for the Native transaction and included an additional $90,000 in working capital to effect the IPW acquisition. With the finalization of these two acquisitions BDCI hopes to continually increase revenue and institute further expansion into the Athleisure wear market across the US and the Caribbean region.
About the Performance Apparel/Athleisure market:
The rise in Athleisure has given apparel sales a significant boost in the last couple of years. In 2014, US consumers spent $323 billion on apparel, footwear and accessories, according to The NPD Group. This was a $2 billion increase from the prior year, and largely thanks to dramatic growth in sales of activewear. Morgan Stanley predicts that, by 2020, activewear will represent $83 billion in sales, “stealing market share from non-athletic apparel.” According to Stylus, “The athleisure phenomenon looks set to continue into 2016 and beyond, and is now on course to become one of the fastest-growing global apparel product categories in the second half of this decade.”
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