(Filed Under Financial and General Interest News). Delta Galil Industries, Ltd. has announced the acquisition of the P.J. Salvage brand and other assets of parent company Loomworks Apparel, Inc.
Phone, email and text requests to public company Delta’s CEO, Isaac Dabah, to disclose the sale price had not been returned as we went to press. Similar requests were made to Loomworks owner Peter Burke who respond, "The financial side is confidential at this stage."
Several times in the past, as sales passed the $1 billion mark, Dabah had revealed his desire to expand Delta through acquisition, not just organic growth alone. Last year he stated in an interview published on the company website, “We should focus more on making acquisitions.” In another interview, also posted on the company website, 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.”
It is known that Delta had, within the past several years, looked at Loomworks and passed on making a deal more than once.
In the second interview, originally posted on Examiner.com in 2014, Dabah had spoken, with regret, of his “almost acquisitions.” At the beginning of 2012, after months of discussions, he ended an attempt to buy the jeans division of Jones New York. He also considered but failed to acquire underwear maker La Perla.
Of the failure with Jones, Dabah stated in the interview, “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.”
The its current announcement, Delta declared it is buying “all of Loomworks’ operations, including its brand names and trademarks, intangibles, working capital and certain liabilities. The purchased business will become part of U.S. subsidiary Delta Galil USA, in a deal that is expected to close by the end of July 2015 and to be accretive to Delta’s earnings.”
“P.J. Salvage is one of the leading brands of fashionable pajamas, loungewear and intimates, with a style that transitions easily from nightwear to everyday wear, and is popular in key markets around the world,” said Dabah, of the purchase. “The acquisition of this respected brand is a further step in the growth of our branded business, and we plan to build on this opportunity to expand P.J. Salvage in upper end retailers in the U.S. and globally.”
The Delta press release boasted that “P.J. Salvage is widely known for chic style and luxury fabrics, and pioneered the crossover of bedroom fashion into loungewear and everyday wear. The brand’s meticulous attention to detail, superior quality, rich fabrics and flattering fit have made P.J. Salvage a favorite among celebrities and the fashion-minded. Its “California cool” sensibility is featured in leading high-end department store chains and specialty boutiques.”
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