Expands Delta’s Branded Business and European Market Share
TEL AVIV, Israel--(BUSINESS WIRE)--Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange,
DELTY.PK/OTCQX), the global manufacturer and marketer of branded and
private label apparel products for men, women and children, as well as
leisurewear, activewear and denim, is announcing that following the
approval of the transaction by the workers council it has completed its
previously disclosed acquisition of Eminence SAS and its subsidiaries
(the “Eminence Group”), which includes leading French underwear brands
for men, women and children: Eminence and ATHENA and the Italian brand
Liabel.
Delta Galil expects the deal to be accretive to its 2019 earnings per
share by approximately $0.40 to $0.45.
In 2017, Eminence Group's net sales totaled approximately 99.0 million
Euros, with most of the products designated for men (87%) and the
remainder for women (8%) and kids and babies (5%). Most of the Group's
sales are to the French market (approximately 79% of all sales) and the
remainder in Western Europe – mainly in Italy (17%) and in Belgium (3%)
– under leading underwear brands in France (Eminence in the upper market
and ATHENA in the mass market) and an Italian underwear brand (Liabel).
On an annual basis, the transaction will increase the share of Delta
Galil sales of men’s products from 24% to 29%. Sales in Europe will
increase from 29% to 34% of Delta Galil total revenues.
Eminence brings to Delta Galil a men’s premium French brand, which has
the second largest men’s underwear market share in France, with products
ranging from undergarments to polo and technical shirts to Eminence
Tech+. ATHENA adds a sporty and athletic, family mass market French
undergarment brand that is modern and cool. In addition to the French
brands, the transaction includes Liabel, an Italian brand, founded
in 1851, which stands on heritage and tradition and brings strong brand
awareness as a mass market Italian t-shirt and underwear brand for the
entire family.
About Delta Galil Industries
Delta Galil Industries is a global manufacturer and marketer of branded
and private label apparel products for men, women and children. Since
its inception in 1975, the Company has continually strived to create
products that follow a body-before-fabric philosophy, placing equal
emphasis on comfort, aesthetics and quality. Delta Galil develops
innovative seamless apparel including bras, shapewear and socks;
intimate apparel for women; extensive lines of underwear for men;
babywear, activewear, sleepwear, and leisurewear. Delta Galil also
designs, develops, markets and sells branded denim apparel under the
brand 7 For All Mankind®, and ladies apparel under the brands
Splendid® and Ella Moss®. For more information, visit www.deltagalil.com.
Safe Harbor Statement
Matters discussed in this press release contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. When used in this press release, the words
"anticipate," "believe," "estimate," "may," "intend," "expect" and
similar expressions identify such forward-looking statements. Actual
results, performance or achievements could differ materially from those
contemplated, expressed or implied by the forward-looking statements
contained herein, and while expected, there is no guarantee that we will
attain the aforementioned anticipated developmental milestones. These
forward-looking statements are based largely on the expectations of the
Company and are subject to a number of risks and uncertainties. These
include, but are not limited to, risks and uncertainties associated
with: the impact of economic, competitive and other factors affecting
the Company and its operations, markets, product, and distributor
performance, the impact on the national and local economies resulting
from terrorist actions, and U.S. actions subsequently; and other factors
detailed in reports filed by the Company.
Contacts
Delta Galil Industries, Ltd.
Nissim Douek, +972-54-5201178
Nissim@unik.co.il
or
U.S.
Media:
Berns Communications Group
Stacy Berns/Danielle Poggi,
1-212-994-4660
sberns@bcg-pr.com