DELTA GALIL’S ACQUISITION OF WUNDIES CONFIRMED
NEW YORK — Delta Galil Industries, an Israeli textile company, announced Sunday it has finalized a deal to acquire Wundies Industries, a privately held apparel manufacturer, in exchange for $30 million worth — or 1.4 million shares — of Delta stock.
This confirms reports that appeared in these columns last month. The move is designed to enhance Delta’s seamless technology.
With annual sales of $100 million, Wundies is a leading manufacturer of private label and licensed intimate apparel and sleepwear for women and girls. It produces women’s goods for Danskin, Bill Blass and Jessica McClintock.
Wundies’ management holds about 6.5 percent of the company’s equity, with Wafra Partners LP, an investment fund, holding the balance.
Based in Tel Aviv, Delta Galil, a global manufacturer, posted sales last year of $355 million. The company develops private label intimate apparel, men’s underwear, socks, infants’ wear and sportswear for Polo Ralph Lauren, Donna Karan, Hugo Boss, Abercrombie & Fitch, Nike and Warnaco’s Calvin Klein Underwear and Olga brands. The company also produces goods for Marks & Spencer, Victoria’s Secret, The Gap, J. Crew and Banana Republic. Marks & Spencer accounted for 51 percent of Delta Galil’s business last year.
Dali Galil competes neck-in-neck in the seamless products market with Tefron, another Israeli firm. In January, Delta Galil acquired Dominion Hosiery Mills, a Canadian company for $9.4 million in cash. Less than two months earlier Tefron acquired Alba-Waldensian, an American company that specializes in seamless production.