Delta Galil Industries, which manufactures and markets such brands as 7 For All Mankind, Splendid, Ella Moss and Karen Neuburger, has signed an option to acquire Eminence SAS and its subsidiaries that includes French underwear brands Eminence and Athena and the Italian brand Liabel.
Eminence would bring to Delta a men’s premium brand that has the second-largest men’s underwear market share in France, with products ranging from undergarments to polo and technical shirts. Athena adds a sporty and athletic mass-market undergarment brand for men, women and children, Delta Galil noted. The Liabel brand, founded in 1851, brings strong brand awareness as a mass-market Italian T-shirt and underwear brand for the entire family, the company noted.
In 2017, Eminence Group’s net sales totaled about 99 million euros ($117.6 million), with 87 percent of its products for men, 8 percent for women and 5 percent for children and infants. Most of the group’s sales are to the French market, and the remainder in Western Europe–mainly in Italy and Belgium.
“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,” Isaac Dabah, CEO of Delta Galil, said. “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 and 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.”
The transaction is expected to close in the third quarter and is subject to the fulfillment of French law requirements applicable to the transfer of a company. For 2019, Eminence is expected to contribute about 100 million euros ($118.79 million) of revenue.
This transaction would help Delta Galil’s revenue to exceed $1.5 billion. Based in Caesarea, Israel, Delta Galil’s sales for 2017 increased 16 percent to $1.37 billion compared to 2016. Net income for the year fell 6 percent to $49 million from the previous year.