Delta Galil Industries has signed an agreement to acquire intimate apparel company The Bogart Group, growing its footprint in the fashion bra and swimwear categories.
Headquartered in Hong Kong, Bogart is a vertically integrated manufacturer and marketer of fashion bras, intimate apparel, sportswear and swimwear. Delta Galil, based in Tel Aviv, said Bogart is a preferred strategic partner for brands like Victoria’s Secret, PVH, Jockey, Adore Me, Vanity Fair and Hanes.
In addition to the Bogart Group, Delta Galil will acquire the company’s subsidiaries Brunet, a leading lace manufacturer, and B&B, a padding manufacturer.
With $230 million in consolidated sales in 2018 for The Bogart Group, Delta Galil expects the deal to show a profit in the second half of 2019 and to be accretive to earnings in 2020. The acquisition is expected to close in the beginning of the third quarter.
“We’re very pleased to be adding The Bogart Group to our strong portfolio of intimate apparel, as expanding our footprint in the bra category has been a long-term goal for Delta Galil,” Isaac Dabah, CEO of Delta Galil, said. “This is a unique strategic opportunity, where I see great potential for Delta to leverage Bogart’s strong market position to further build its company, while also helping Delta’s business units expand to the next phase of growth.”
Delta Galil develops innovative seamless apparel, including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men, and babywear, activewear, sleepwear and leisurewear. Delta Galil also makes and sells branded denim apparel under the 7 For All Mankind brand, and women’s apparel under the Splendid brand.
In the first quarter ended March 31, Delta Galil said sales grew 9 percent to $365.4 million. Net income in the period fell 59 percent to $3 million.
In reporting those results last month, Dabah said, “With a strong balance sheet in place, we have the necessary financial resources to continue to innovate and grow, both organically and through strategic acquisitions.”