Expands Delta’s Branded Business and European Market Share
Deal Expected to be Accretive in 2018
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 today announced that it has signed an
option to acquire 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. The
transaction is expected to close in the third quarter of 2018 and is
subject to the fulfillment of French law requirements applicable to the
transfer of a company (in particular, an obligation to consult with
Eminence's works council).
“We are very pleased to look at adding the Eminence Group to our
portfolio, as it represents a dominant leader in French men’s
undergarments, with strong consumer appeal”
For 2019, Eminence is expected to contribute approximately €100 million
of revenue and approximately $0.40 to $0.45 to Delta’s earnings per
share, excluding transaction and other deal-related expenses. This
transaction would accelerate Delta revenue to exceed $1.5 billion.
Eminence would bring to Delta 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.
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).
“We are very pleased to look at adding the Eminence Group to our
portfolio, as it represents a dominant leader in French men’s
undergarments, with strong consumer appeal,” said Isaac Dabah, CEO of
Delta Galil. “This is a very compelling transaction for Delta that
reflects our strategic efforts to expand our branded business and
introduce Delta in a significant way to France & Italy where our
activities to date have been small. By providing potential synergies in
products, innovation and operations, we see this opportunity as a
platform for growth.”
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