Tel Aviv-based Delta Galil Industries Ltd. has agreed to acquire Loomworks Apparel’s P.J. Salvage loungewear and sleepwear brand and other Loomworks assets.

The transaction is expected to close by the end of this month and to be accretive to Delta’s earnings. The purchase price wasn’t disclosed, and Isaac Dabah, chief executive officer of Delta Galil, had no comment on the Israeli publication Haaretz’s report that the purchase price was $37 million, with the sellers eligible for another $3.75 million if certain profit targets are met in the next two years.

Peter Burke, principal of P.J. Salvage, will stay on with the company as its ceo. He will report to Maurice Reznik, president and chief operating officer of Delta’s U.S. subsidiary.

Dabah told WWD, “It’s 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.”

P.J. Salvage’s major U.S. customers include Nordstrom, Bloomingdale’s and Dillard’s. The company doesn’t conduct an e-commerce operation of its own but about 30 percent of its Nordstrom’s business is done through the retailer’s Web site. “We will explore e-commerce but it’s not a priority at the moment,” the ceo said.

The purchase will include essentially all of Irvine, Calif.-based Loomworks’ operations, including brand names and trademarks, intangibles, working capital and certain liabilities.

Asked what attracted the sellers to Delta, Dabah quickly cited the opportunity to expand globally, from its current global sales penetration of just over 10 percent. “Our ability to help with sourcing, innovation and the global nature of our company is attractive, and this will help free Peter to focus on making sure the company continues to grow,” he said. “We have offices throughout Europe and facilities in other parts of the world and can help the brand grow in all the places we have resources,” Dabah said.

He noted that Delta also intends to find ways to expand the business into intimates and children’s wear.

While Delta Galil continues to produce high-tech products for the activewear and innerwear markets, it’s made a series of purchases to elevate its percentage of higher-end branded products as it’s continued to license what it views as relevant brands that match its core competencies.

In quick succession in 2012, it acquired German underwear maker Schiesser AG, children’s sock specialist LittleMissMatched and the KN Karen Neuberger brand. But buying activity has been muted since.

“It’s a seller’s market,” Dabah said, “so if you’re going to pursue a purchase, it has to be something that you can grow with.  You have to find the right target.”

Last year, Delta Galil’s net income, including special items, increased 11.3 percent to $47.4 million, or $1.82, from $42.7 million, or $1.69, in the prior year. Sales grew 5.9 percent to $1.03 billion from $974.7 million.

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