25th August 2020: The Tel Aviv-based Delta Galil intimates and apparel manufacturer’s latest addition is leading e-tailer BareNecessities.com, which it has agreed to buy for an undisclosed amount.
“This transaction reflects our strategic growth objective to diversify our distribution channels,” Isaac Dabah, chief executive officer of Delta Galil, said in a statement. “As the digital space currently represents the fastest-growing segment in our industry, we are very pleased to acquire such an authority in online intimates. Bare Necessities can significantly enhance Delta Galil’s presence in the digital world, as we continue to pursue growth online. I look forward to partnering with the senior leadership of Bare Necessities to achieve strong, profitable growth.”
The company — which is home to theSeven for All Mankind, Schiesser, Eminence, P.J. Salvage, Schiesser, Eminence, Splendid, P.J. Salvage, Karen Neuburger, Nearly Nude and Fix brands in its greater portfolio — lost more than $53 million in the most recent quarter, compared with profits of $5.1 million a year earlier. However sales increased 163% year-over-year along Delta Galil’s own online platforms during the quarter.
Shares of Delta Galil shot up nearly 18 percent on Tuesday to close at $51.70.
The deal with New York City-based Bare Necessities is expected to close in the next few weeks and be linked to next year’s earnings, the company said. Bare Necessities, which was founded in 1998, was previously owned by Walmart who acquired them in 2018. BareNecessities.com sells more than 160 brands across the intimates, lingerie, swimwear, shapewear and sleepwear categories, including large brands such as Chantelle, Spanx, Wacoal and Calvin Klein although the site is not shipping to European countries at present.
