Israeli Delta Galil acquires premium brands from US VF Corp
VF Corporation (Vanity Fair) announced on June 30, 2016, that it has signed a definitive agreement to sell its Contemporary Brands businesses to Delta Galil Industries, Ltd . Brands included in the transaction are 7 for All Mankind®, Splendid® and Ella Moss®.
Commenting on the transaction, VF’s Chairman and Chief Executive Officer Eric Wiseman said, “We are pleased to have reached this agreement. The brands included in this transaction are leaders in their sectors, and have talented, passionate people who are motivated by serving the marketplace with distinctive apparel design and exceptional service.”
Wiseman continued, “Earlier this year we said that we are taking a focused and proactive look at the composition of our business portfolio to ensure that we are well positioned to maximize VF’s growth and return to our shareholders. This announcement illustrates that our work as active portfolio managers is progressing.”
The transaction, which is expected to close in the third quarter of this year, is subject to various regulatory approvals and other customary closing conditions that must be accomplished in order for a closing to occur. The selling price is USD 120 million, subject to various working capital adjustments.
VF Corporation (Vanity Fair) is a global leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. The company’s highly diversified portfolio of powerful brands spans numerous geographies, product categories, consumer demographics and sales channels, giving VF a unique industry position and the ability to create sustainable, long-term growth for our customers and shareholders. The company’s largest brands are The North Face®, Vans®, Timberland®, Wrangler®, Lee® and Nautica®. For more information, visit http://www.vfc.com.
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; activewear, sleepwear and leisurewear. For more information, visit http://www.deltagalil.com.
Isaac Dabah, CEO of Delta Galil stated that this transaction is their strategic efforts to grow Delta Galil’s branded business and expand their global footprint. They are thrilled to be adding three renowned premium brands to their portfolio, as they further diversify their product offering and distribution channels, while adding significant strength to their structure. They see tremendous opportunity to expand the brands’ platform for growth through continued focus on superior quality, design and innovation.
The acquisition is projected to add over USD 300 million in Delta Galil’s top line annual sales and is expected to be accretive to Delta Galil’s earnings in 2017. The newly acquired brands join Delta Galil’s prominent portfolio including P.J. Salvage, Schiesser, KN Karen Neuberger, Nearly Nude, LittleMissMatched and FIX.
7 For All Mankind is the global leader in the premium denim market, representing the symbol of the effortless, sexy sophistication of California style. Founded in 2000, the brand now includes a full range of denim lifestyle products including sportswear, footwear, eyewear, handbags, belts and kids that complement its core business. Its products are distributed globally through high-end department stores, its own retail locations and a robust e-commerce channel.
Splendid and Ella Moss are leading U.S. premium sportswear brands focused on contemporary knit tops, with products sold through premium department and specialty stores, owned retail stores, upper market retailers and e-commerce. The Splendid brand is known for its luxury knit products using soft fabrics, sexy fit and modern styling. The Ella Moss brand is an ultra-feminine knit tops and dresses collection featuring print and pattern-driven products in bold, bright colors.
Delta Galil from their original base in Israel, in over 4 decades have established strategically located design, development and manufacturing centers spread across four continents. They employ 8500 associates people worldwide and serve over 50 industry-leading customers in the US, UK, and Europe.
Ever aware of the pulse of the marketplace, Delta Galil is depended on by leading apparel designers and retailers worldwide to help them introduce new products and innovative manufacturing solutions that answer consumer demands and help grow their market share. With an eclectic offering of made-to-order products, Delta Galil’s range includes: intimate apparel for men & women, active wear, socks and kids & baby wear. The firm is proud to have contributed to the success of: Wal-Mart, Marks & Spencer, and Target as well as leading fashion brands such as Calvin Klein, Nike and Victoria’s Secret. In addition Delta Galil sells its products under brand names licensed to the company, these include: Wilson, Maidenform, Tommy Hilfiger, Lacoste and others. Since 2012 Schiesser underwear belongs to the Israeli company and since October 2015 Delta Galil is in possession of license deal with PUMA to take over all brand activity in Israel. It entails marketing, distribution and retail activities of PUMA in Israel. This will include opening two new concept stores during 2016, distribution of PUMA products to the various retailers and developing a new online shop. This deal represents a strong addition to the Delta Galil brands portfolio, yet another step forward for Delta as a leading force in the market in Israel and worldwide.