(Filed Under wholesale Lingerie News). Isaac Dabah, CEO of Delta Galil, declared in an article, re-printed on the his company’s website this week, his intentions to eventually acquire a company with sales in the $1.5 to $2 billion range. He also discussed plans to use the Delta’s recently licensed Lacoste brand to spearhead initiatives into the Chinese market and other strategies.
In the interview, done originally with “The Marker,” a financial website based in Israel, Dabah implied that no large acquisition was imminent, noting that now is more a “seller’s market.” But he did state that he might “raise money by issuing stocks” to do a large deal. This year sales at Delta itself are expected to exceed $1 billion for the first time.
In more than one instance Dabah has revealed his desire to expand Delta through acquisition and not organic growth alone, and he repeated the sentiment again. “We should focus more on making acquisitions,” he replied to a question about selling some of his own shares in Delta. (Currently he owns just over 50% of the firm’s publicly trade shares). “By acquisitions we can become one of the ‘top 10’ in the field,” he added.
Earlier this year, in an interview also posted on the Delta website (BODY, January 28, 2014), Dabah listed as one of his failures of 2013, “Zero acquisitions. That’s a mistake. I should have paid more and bought something. We are constantly looking into things. We don’t like taking risks, but maybe I should have taken a bit of a risk to dramatically change the company.”
In that interview, originally posted on examiner.com, Dabah also spoke, with regret, of his “almost acquisitions” in recent years of the jeans division of Jones and underwear maker La Perla. Of the failure with Jones, Dabah stated, “We were too conservative. It was a pretty big deal for us to make, we made a good offer, but I wanted an even better price. There was a 20-30 million dollar difference. When I look back at that miss I can be smart enough to say it’s a shame we didn’t make the purchase. Had we gotten that ‘Jones’ division, ‘Delta’ would have been a completely different company today.”
In the end, the entirety of the Jones Group agreed to be bought by Sycamore Partners for $1.2 billion.
Other portions of the recent Marker interview covered Delta’s manufacturing strategy, the company’s commitment to fair workplace practices, changes implemented at Schiesser, the German underwear company Delta took over in 2012 and plans to expand in Europe as well as China and South America. The interview be found at : http://deltagalil.com/acquisitions-innovations-small-factory-making-big-change-textile-industry/
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