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Delta Galil USA, a subsidiary of Israel-baased Delta Galil Industries Ltd., has acquired the trademarks of LittleMissMatched, a specialist of socks and apparel for kids.
A purchase price was not available, but combined annual retail and wholesale revenues for LittleMissMatched are in excess of $20 million, according to industry estimates.
The LittleMissMatched brand was founded in 2003 as a sock resource that specialized in three pairs of mismatched socks in a package, an amusing merchandising twist that made wearing socks fun for kids. The brand quickly grew into apparel for girls, followed by several licensees including accessories, bedding, and underwear and bras for girls that were licensed to Delta to produce.
Isaac Dabah, chief executive officer of Delta Galil Industries, said plans are to expand the label into a lifestyle brand with a focus on products for babies and kids, and eventually branch out into the junior market.
“LittleMissMatched was really focused on socks, with 35 percent of the business in apparel. We can help them grow,” said Dabah. “We already have the [licensed] Maidenform brand in kids’ intimates, so this will allow us to have a much bigger presence in the kids market.”
Dabah said a big push will be made into apparel, another area the brand has given a whimsical touch with reversible jackets, skirts, hoodies and pants.
“The idea is to grow the business into an apparel brand that is a little bit cool,” said Dabah, noting that categories being considered in the future include swimwear and outerwear.
He further noted that both Delta and LittleMissMatched share synergies in the sock realm. Sixty percent of LittleMissMatched’s business is centered in hosiery, socks and accessories. In addition to underwear, Delta produces socks for men and women for three licensees: Converse, Wilson and Kenneth Cole.
Andrew Arguiarro, vice president of licensing and sales at LittleMissMatched, said the brand has a strong retail presence in key channels of distribution.
“We have 13 LittleMissMatched stores, one in downtown Orlando and another in downtown Anaheim, [near Disney], as well as a store on Fifth Avenue in Manhattan and one in Grand Central Station, with the rest in shopping malls across the U.S. Our international presence includes a store in Tokyo and another in Santiago, Chile,” said Arguiarro, “The brand is also sold at Toys ’R Us, FAO Schwartz, Michael’s [arts and crafts chain], and on QVC since 2009. QVC has been great for the brand because customers often buy for their granddaughter, their daughter and for themselves.”
Dabah noted there are no immediate plans for international expansion.
“For now, we are focusing on the U.S. market,” he said.
This marks Delta’s third acquisition this year.
In July, Delta Galil Industries acquired German underwear maker Schiesser AG for an estimated $85 million. In June, Delta purchased the assets, inventory and brand name of KN Karen Neuburger from CIT for $4 million.
Annual sales projections for 2013 for the Tel Aviv-based maker of performance innerwear and activewear company are about 12 percent above 2012 estimates, including revenues next year of $910 million to $920 million.