Expands Delta’s Footprint in Profitable Fashion Bra and Swimwear Categories. Acquisition Expected to Close in the beginning of Q3 and Be Accretive to Earnings in 2020
Tel Aviv – June 10, 2019 – 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 agreement to acquire intimate apparel leader, The Bogart Group (“Bogart”).
Headquartered in Hong Kong, Bogart is a vertically integrated global leader in the design, development and manufacturing of fashion bras, and one of the top leading names in intimate apparel, sports and swimwear. The Company is a preferred strategic partner for some worldwide leading brands such as Victoria’s Secret, PVH, Jockey, Adore Me, Vanity Fair, Hanes, among others. In addition to The Bogart Group, Delta Galil will acquire the Company’s subsidiaries Brunet, a leading lace manufacturer; and B&B, a leading padding manufacturer.
With $230 million in consolidated sales in 2018 for The Bogart Group, Delta Galil expects the deal to show a profit in the second half of 2019 and to be accretive to earnings in 2020. The acquisition is expected to close in the beginning of Q3.
“We’re very pleased to be adding The Bogart Group to our strong portfolio of intimate apparel, as expanding our footprint in the bra category has been a long-term goal for Delta Galil,” said Isaac Dabah, CEO of Delta Galil. “This is a unique strategic opportunity, where I see great potential for Delta to leverage Bogart’s strong market position to further build its company, while also helping Delta’s business units expand to the next phase of growth.”
About The Bogart Group
Since 1993, The Bogart Group has served as a fascinating entrepreneurial adventure focused in the dynamic, fashion driven Intimate Apparel world. Born in the World’s City of Hong Kong, it spreads through Asia to serve the best Lingerie, Sports and Swimwear brands in the world. Today it is home of 5 leading specialized Companies in different activities of the industry that employ in excess of 10,700 persons.
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