Delta Galil set to take over intimates group Bogart
Delta Galil Industries, Ltd., the Tel Aviv-based owner of Seven For All Mankind, announced on Monday that it has signed an agreement to acquire Hong Kong-based vertically integrated intimate apparel company The Bogart Group.
Specialized in intimates, sports and swimwear, Bogart is the preferred strategic partner of a number of global brands including Victoria’s Secret, PVH, Jockey, Adore Me, Vanity Fair and Hanes, among others, and reported consolidated sales of $230 million in 2018.
In addition to Bogart, the deal will see Delta Galil acquire the company’s subsidiaries, lace manufacturer Brunet and padding maker B&B.
“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 Delta Galil CEO Isaac Dabah. “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.”
Delta Galil, which bought Seven For All Mankind and Splendid/Ella Moss from VF Corp for $120 million in 2016, expects the acquisition of Bogart to be showing a profit by the second half of fiscal 2019 and to be accretive to earnings in 2020.
The company reported $365.4 million in sales in the first quarter, up 9% year over year, but saw its net profit plummet 59% to $3 million due to unfavorable exchange rates and increased operating costs.
Delta Galil intends to close its acquisition of Bogart in the beginning of the third quarter.
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