Delta Galil Industries Ltd. has concluded the sale of the P.J. Salvage loungewear brand and other assets of its parent firm, Loomworks Apparel Inc., 11 days after disclosing the deal.
The California-based brand and other assets become part of the Tel Aviv-based company’s Delta Galil USA subsidiary.
Isaac Dabah, chief executive officer of Delta Galil, said the acquisition increases “our presence in the upper retail market segment and [broadens] our global footprint.”
The purchase price for the acquisition wasn’t revealed. Reports in the Israeli press said the price was approximately $37 million with the sellers, including ceo Peter Burke, eligible for an additional $3.75 million if profit goals are met in the next two years.
Dabah earlier described the Salvage brand as “a product with a very unique handwriting, contemporary with a base in sleepwear that has moved successfully into loungewear and intimates. They’ve carved out a position that is more like loungewear you’d wear on the weekends, and something the Millennials are very open to.”
Key points of sales for the acquired brand include Nordstrom, Bloomingdale’s and Dillard’s. Although it operates no e-commerce site of its own, P.J. Salvage conducts about 30 percent of its Nordstrom business through the nordstrom.com Web site.
Dabah said a priority for the brand will be expanding its distribution outside the U.S. beyond its currently level of about 10 percent.
Burke will report to Maurice Reznik, president and chief operating officer of the U.S. subsidiary.
Ohana & Co. served as financial adviser to Delta Galil in the transaction.