A company set up by former Fruit of the Loom chief executive, Mr William McCarter, has joined forces with US clothing company, Delta Apparel, to market its products across Europe.

Delta is a $100 million (£73.5 million) company which manufactures T-shirts and sweatshirts.

Mr John Wigodsky, executive vice-president of Delta Apparel, said he expected sales and awareness of Delta products would increase significantly following the deal.

"WP McCarter has an excellent track record in the industry and we in Delta feel very confident that it will build a major European business for Delta."

Mr McCarter, his brother John and Mr Seamus McEleney resigned from Fruit of the Loom last September following a protracted dispute with the parent company. They are all involved in the new venture.

It is understood that WP McCarter & Co, the name of the original Buncrana, Co Donegal company, reverted to the McCarter family as part of the deal when the brothers left Fruit of the Loom last year.