Delta Galil Completes Acquisition of Eminence

Delta Galil announced that it has completed the previously reported acquisition of French underwear brand Eminence SAS and its subsidiaries.

The company reported that “following the approval of the transaction by the workers council,” it finalized the deal which includes “leading French underwear brands for men, women and children: Eminence and Athena and the Italian brand Liabel.”

Delta added, “in 2017, Eminence Group’s net sales totaled approximately 99.0 million Euros, with most of the products designated for men (87%) and the remainder for women (8%) and kids and babies (5%). Most of the Group’s sales are to the French market (approximately 79% of all sales) and the remainder in Western Europe – mainly in Italy (17%) and in Belgium (3%) – under leading underwear brands in France (Eminence in the upper market and Athena in the mass market) and an Italian underwear brand (Liabel).”

“On an annual basis, the transaction will increase the share of Delta Galil sales of men’s products from 24% to 29%. Sales in Europe will increase from 29% to 34% of Delta Galil total revenues.

Delta stated that Eminence “has the second largest men’s underwear market share in France, with products ranging from undergarments to polo and technical shirts,” adding that Athena is “a sporty and athletic, family mass market French undergarment brand.” It explained that Liabel, founded in 1851 “stands on heritage and tradition and brings strong brand awareness as a mass market Italian t-shirt and underwear brand for the entire family.”

“Delta Galil expects the deal to be accretive to its 2019 earnings per share by approximately $0.40 to $0.45.”

Founded in 1975, Delta Galil is an Israel-based public company. It has made some other big recent acquisitions including PJ Salvage and a collection of brands from VF Corporation including 7 for All Mankind, Splendid and Ella Moss. The company describes itself as a developer of “innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men; babywear, activewear, sleepwear, and leisurewear,” as well as a producer of branded denim apparel.