Lakeland (NASDAQ: LAKE) divests HPFR and HiViz line to NSA for $14M
Rhea-AI Filing Summary
Lakeland Industries has completed the sale of its high-performance flame-resistant (HPFR) and high-visibility (HiViz) workwear product line to National Safety Apparel for an aggregate purchase price of $14.0 million. The deal includes certain assets and liabilities tied to these ANSI-compliant and arc-rated garments.
As part of the transaction, the parties signed an Asset Purchase Agreement plus a transition services agreement, contract manufacturing agreement, supply agreement and other ancillary documents. Lakeland highlights that the divestiture is intended to streamline its portfolio and intensify focus on its global fire services platform and core industrial PPE strategy, while the proceeds are expected to support its balance sheet and capital flexibility.
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Insights
Lakeland redirects capital from a non-core line toward fire services and core industrial PPE.
Lakeland Industries sold its HPFR and HiViz product line for $14.0 million to National Safety Apparel, exiting a business management describes as misaligned with its core industrial product strategy. Multiple ancillary agreements, including transition services and supply, help maintain customer continuity.
Management frames the move as part of a two-year effort to expand a head-to-toe global fire portfolio and concentrate on core industrial PPE. The company states that proceeds are expected to strengthen the balance sheet and increase capital flexibility to invest in fire services growth, but actual financial impact will depend on redeployment of this capital and the profitability of remaining operations.
8-K Event Classification
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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Item 1.01 Entry into a Material Definitive Agreement.
On March 27, 2026, Lakeland Industries, Inc. (the “Company”) and National Safety Apparel, LLC (the “Buyer”) entered into an Asset Purchase Agreement (the “Purchase Agreement”) pursuant to which the Company agreed to sell, and the Buyer agreed to acquire certain assets and assume certain liabilities related to the Company’s high-visibility and high-performance workwear styles consisting of ANSI-compliant high-visibility apparel and arc-rated and flame-resistant technical garments (the “Business”). The closing of the transaction (the “Closing”) also occurred on March 27, 2026. In connection with the Closing, the parties also entered into a transition services agreement, a contract manufacturing agreement, a supply agreement and certain other ancillary agreements.
Pursuant to the Purchase Agreement, the Company sold the Business to the Buyer for an aggregate purchase price (the “Purchase Price”) of $14.0 million, subject to a $400,000 escrow for post-closing inventory adjustments and a $1.0 million escrow to secure the Company’s indemnification obligations. The Purchase Agreement contains customary representations, warranties, and covenants, including a restrictive covenant that limits the Company from engaging in certain business activities for five years following the Closing. In addition, the Company and the Buyer have each agreed to indemnify one another for losses resulting from (i) any inaccuracy in or breach of the representations and warranties contained in the Purchase Agreement, the ancillary documents or any agreement or instrument pursuant to the Purchase Agreement and (ii) any breach or non-fulfilment of their covenants, agreements and other obligations pursuant to the Purchase Agreement, the ancillary documents or any agreement or instrument pursuant to the Purchase Agreement. Further, the Company has agreed to indemnify the Buyer for losses resulting from any excluded assets, retained liabilities, and certain other specified indemnities. The Buyer has also agreed to indemnify the Company for losses resulting from any assumed liabilities, subject to the Company’s indemnification obligations. The parties’ indemnification obligations are subject to certain limitations, including a deductible of 1% of the Purchase Price and a cap equal to 50% of the Purchase Price, in each case, for losses relating to any inaccuracy in or breach of any representation or warranty.
The above description of the Purchase Agreement is a summary and is not complete. It is qualified in its entirety by reference to the Purchase Agreement, which will be filed by the Company with the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending April 30, 2026.
Item 7.01 Regulation FD Disclosure.
On March 30, 2026, the Company issued a press release, attached hereto as Exhibit 99.1, announcing the entry into the Purchase Agreement.
The information contained in this Item 7.01 and in the accompanying Exhibit 99.1 is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
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Press release, dated March 30, 2026 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LAKELAND INDUSTRIES, INC. |
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Date: |
March 30, 2026 |
By: |
/s/ James M. Jenkins |
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James M. Jenkins |
Exhibit 99.1
Lakeland Fire + Safety Completes Sale of HPFR and HiViz Product Line
Sale to National Safety Apparel Strengthens Balance Sheet and Capital Flexibility
Divestiture Further Focuses Portfolio Around Fire Services Growth and Core Industrial PPE Strategy
HUNTSVILLE, Ala., March 30, 2026 – Lakeland Industries, Inc. ("Lakeland Fire + Safety" or "Lakeland") (NASDAQ: LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare and first responders, today announced the completion of the sale of its High Performance Flame Resistant ("HPFR") and High-Visibility ("HiViz") product line to National Safety Apparel (“NSA”), a U.S.-based manufacturer of purpose built PPE.
This sale represents an important step in Lakeland’s ongoing effort to streamline its portfolio and focus investment on its head-to-toe global Fire portfolio and core industrial PPE business.
NSA serves industrial, utility and public-sector customers across key industrial safety categories, including flame-resistant workwear, arc flash and electrical PPE and high-heat industrial protection. Lakeland believes NSA is well positioned to support the HPFR and HiViz business going forward. Lakeland will provide transitional support under a services agreement to help ensure an orderly handoff for customers.
“This transaction reflects our continued focus on aligning Lakeland’s portfolio with our long-term strategy,” said Jim Jenkins, President and Chief Executive Officer of Lakeland. “Over the past two years, we have significantly expanded our fire services platform through acquisition and organic investment, and this divestiture allows us to further concentrate on those opportunities while sharpening our focus on our core industrial PPE markets. The business we divested did not align with Lakeland’s core industrial product strategy. NSA's dedicated focus on PPE across multiple end markets makes them the right home for this business and its customers.”
Lakeland has expanded its fire services portfolio through acquisitions and internal initiatives across the United States, Europe and Australia. Today, the Company offers fire protection products and related services including turnout gear, helmets, gloves, boots, apparel, decontamination, repair and rental solutions.
The proceeds from the transaction are expected to support Lakeland’s balance sheet and provide additional flexibility to invest in its fire services strategy.
“This transaction allows us to realize value from the HPFR and HiViz business while increasing our flexibility to allocate capital toward the areas of Lakeland where we see the strongest long-term opportunity,” said Calven Swinea, Chief Financial Officer of Lakeland.
Cherry Tree & Associates served as financial advisor to Lakeland. Maynard Nexsen acted as legal advisor to Lakeland.
About Lakeland Fire + Safety
Lakeland Fire + Safety manufactures and sells a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. In addition, we provide decontamination, repair and rental services that complement our fire services portfolio. Our products are sold globally by our in-house sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire and industrial distributors and wholesale partners. Our authorized distributors supply end users across various industries, including integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high-tech electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community ("EEC"), Canada, Chile, Argentina, Commonwealth of Independent States (“CIS”) Region, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.
For more information about Lakeland, please visit the Company's website at www.lakeland.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
This press release contains estimates, predictions, opinions, goals and other "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, references to the Company's predictions or expectations of future business or financial performance as well as its goals and objectives for future operations, financial and business trends, business prospects, and management's expectations for earnings, revenues, expenses, inventory levels, capital levels, liquidity levels, or other future financial or business performance, strategies or expectations, including without limitation our portfolio strategy and anticipated benefits of the divestiture. All statements, other than statements of historical facts, which address Lakeland's expectations of sources or uses for capital, or which express the Company's expectation for the future with respect to financial performance or operating strategies, can be identified as forward-looking statements. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in press releases and Forms 8-K, registration statements, quarterly and annual reports and other reports and filings filed with the Securities and Exchange Commission or made by management. As a result, there can be no assurance that Lakeland's future results will not be materially different from those described herein as "believed," "projected," "planned," "intended," "anticipated," "can," "estimated" or "expected," or other words which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which such statement is based, except as may be required by law.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
LAKE@mzgroup.us
www.mzgroup.us