AP NEWS

Delta Galil Completes Acquisition of Eminence Group Ahead of Plan

July 9, 2018

TEL AVIV, Israel--(BUSINESS WIRE)--Jul 9, 2018--Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX), the global manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear, activewear and denim, is announcing that following the approval of the transaction by the workers council it has completed its previously disclosed acquisition of 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.

Delta Galil expects the deal to be accretive to its 2019 earnings per share by approximately $0.40 to $0.45.

In 2017, 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%). 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).

On an annual basis, the transaction will increase the share of Delta Galil sales of men’s products from 24% to 29%. Sales in Europe will increase from 29% to 34% of Delta Galil total revenues.

Eminence brings to Delta Galil a men’s premium French brand, which has the second largest men’s underwear market share in France, with products ranging from undergarments to polo and technical shirts to Eminence Tech+. ATHENA adds a sporty and athletic, family mass market French undergarment brand that is modern and cool. In addition to the French brands, the transaction includes Liabel, an Italian brand, founded in 1851, 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.

About Delta Galil Industries

Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men; babywear, activewear, sleepwear, and leisurewear. Delta Galil also designs, develops, markets and sells branded denim apparel under the brand 7 For All Mankind ®,  and ladies apparel under the brands Splendid ® and Ella Moss ®. For more information, visit www.deltagalil.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect” and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180708005040/en/

CONTACT: Delta Galil Industries, Ltd.

Nissim Douek, +972-54-5201178

Nissim@unik.co.il

or

U.S. Media:

Berns Communications Group

Stacy Berns/Danielle Poggi, 1-212-994-4660

sberns@bcg-pr.com

KEYWORD: MIDDLE EAST ISRAEL

INDUSTRY KEYWORD: DEPARTMENT STORES ONLINE RETAIL RETAIL FASHION SPECIALTY OTHER RETAIL

SOURCE: Delta Galil Industries, Ltd.

Copyright Business Wire 2018.

PUB: 07/09/2018 12:00 AM/DISC: 07/09/2018 12:01 AM

http://www.businesswire.com/news/home/20180708005040/en

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