Delta Galil Industries has completed the transaction to purchase the assets and part of the operations of Gibor Sports in the field of socks in exchange for 23.5 million shekels. As part of the transaction, Delta is also purchasing Gibor Sports’ inventory for an additional 10 million shekels. The transaction will be based on Delta’s position as the leading company in the production and marketing of sport socks.
Isaac Dabach, Chairman and CEO of Delta, said that the purchase of Gibor Sports’ socks operation is synergetic with the company’s operations and will turn Delta into a main supplier of Nike in the socks field. Delta expects that the transaction will increase sport socks sales to Nike by some 90 million shekels a year, out of which some 80% is in sales to Europe, and the rest to the United States, and will lead to a doubling of Delta’s sock sales to Nike.
Gil Shimon, Director General of Delta’s sock operations field, said that the purchase will enable the company to penetrate to new customers in the sport socks field, and to enter operations in soccer socks, a new category in which the company has not had operations. The purchase is an important step in strengthening the company’s connection with Nike, as part of the strategy to focus on market-leading customers.
Delta sales in the sock field totaled some 106 million dollars in 2008, and constituted some 17% of the company’s overall sales. The company’s sock products for women, men and children are marketed to retail chain house brands, leading brands in Europe and the United States such as Nike, and as part of brand name concessions.
Adv. Shmuel Hamou of the Shibolet office handled the transaction on behalf of Delta, and Adv. Yoni Schneidman of the Samet office handled it on behalf of Gibor.
Dror Sharvit – Investor Relations