Delta Galil signs to acquire Eminence SAS and its subsidiaries

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%) in 2017. 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).

CEO of Delta Galil, Isaac Dabah, CEO of Delta Galil said that, “We are very pleased to look at adding the Eminence Group to our portfolio, as it represents a dominant leader in French men’s undergarments, with strong consumer appeal.” He also added that “This is a very compelling transaction for Delta that reflects our strategic efforts to expand our branded business and introduce Delta in a significant way to France & Italy where our activities to date have been small. By providing potential synergies in products, innovation and operations, we see this opportunity as a platform for growth.”

For 2019, Eminence is expected to contribute approximately €100 million of revenue and approximately $0.40 to $0.45 to Delta’s earnings per share, excluding transaction and other deal-related expenses. This transaction would accelerate Delta revenue to exceed $1.5 billion. Eminence would bring to Delta a men’s premium French brand, having the second largest men’s underwear market share in France, with products ranging from undergarments to polo and technical shirts to Eminence Tech+.

Delta Galil Industries, Ltd., the global manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear, activewear and denim announced that it has signed an option to acquire Eminence SAS and its subsidiaries (the “Eminence Group”), which includes leading French underwear brands for men, women and children: Eminence and ATHENA and the Italian brand Liabel.

ATHENA adds a sporty and athletic, family mass market French undergarment brand that is modern and cool. Adding to the French brands, the transaction includes the Italian brand, founded in 1851 Liabel, which stands on heritage and tradition and brings strong brand awareness as a mass market Italian t-shirt and underwear brand for the entire family.

The transaction is expected to close in the third quarter of 2018 and is subject to the fulfillment of French law requirements applicable to the transfer of a company (in particular, an obligation to consult with Eminence’s works council).