Israel-based Delta Galil Industries Ltd. has entered into a definitive agreement with Greensboro, N.C.-based VF Corp. to acquire three premium contemporary brands — 7 For All Mankind®, Splendid® and Ella Moss® — for $120 million subject to various working capital adjustments. Delta Galil projects the transaction, which is expected to close in the third quarter of this year, will add more than $300 million to top line sales annually, and the deal is expected to be accretive to the company’s earnings in 2017.
“We are thrilled to be adding three renowned premium brands to our portfolio, as they further diversify our product offering and distribution channels, while adding significant strength to our structure,” said Isaac Dabah, CEO of Delta Galil.
“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,” said Eric Wiseman, chairman and CEO, VF Corp. “This announcement illustrates that our work as active portfolio managers is progressing.”
July/August 2016
