Lakeland Fire + Safety Completes Sale of Decatur, Alabama Warehouse Facility in Connection with Capital Reallocation Initiatives
$6.1 Million Sale and Partial Leaseback Strengthens Balance Sheet and Provides Financial Flexibility for Operational Enhancements
HUNTSVILLE, Ala., Aug. 27, 2025 (GLOBE NEWSWIRE) -- 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 that it has completed the sale of its Decatur, Alabama warehouse property to an unrelated party.
The sale is part of the company’s previously disclosed financial and operational initiatives to streamline global operations and improve profitability. Lakeland has commenced a search for a new upgraded warehouse, logistics and lab facility in a more strategic location to replace the Decatur facility.
The sale price was $6.1 million, less customary commissions and closing expenses. Harbert Realty Services provided brokerage and advisory services, and Maynard Nexsen provided legal services for the sale. The sale of the Decatur facility includes a short-term leaseback on one of the three property warehouses while the Company continues to explore alternative sites.
“The sale of the Decatur, Alabama facility is part of our broader operational consolidation strategy aimed at enhancing efficiency and reducing costs, and this non-core asset disposition provides a meaningful cash infusion for our balance sheet,” said Jim Jenkins, CEO and Executive Chairman of Lakeland Industries. “Combined with our previously announced closures, including the planned closures of our warehouse facility in Hull, England and Veridian manufacturing facility in Quitman, Arkansas, these initiatives are expected to streamline global operations, improve profitability, and generate annual savings of approximately $1 million for the remainder of fiscal year 2026. Additionally, the short-term sale-leaseback transaction for the Decautur facility enhances our financial flexibility as we evaluate more strategically located facilities. We have further identified and are executing initiatives expected to yield an additional $3 million in annualized savings, with the benefits anticipated to materialize in the second half of fiscal 2026.
“Looking ahead, we are highly focused on growing top-line revenue as we continue to implement operating and manufacturing efficiencies including consolidation of warehousing, logistics, and manufacturing operations globally. We believe these efforts will enable higher margins and build a more agile and cost-effective Lakeland in the longer term,” concluded Jenkins.
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. 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, such as 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, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.
For more information about Lakeland, please visit the Company online at www.lakeland.com.
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This press release contains "forward-looking statements" as that phrase is defined in the Private Securities Litigation Reform Act of 1995. 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, including statements regarding our operational efficiency plans, 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.
Contacts
Lakeland Fire + Safety
256-600-1390
Roger Shannon
Chief Financial Officer
rdshannon@lakeland.com
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
LAKE@mzgroup.us
www.mzgroup.us
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