Bharat Apparel - Apparel Portal

ISRAEL: Global apparel manufacturer Delta Galil in new hands

JERUSALEM: Delta Galil Industries Ltd., a global company with growth and profitability potential will be controlled by Mr. Issac Dabah.

Mr. Dov Lautman founder of the company today informed that he is transferring the effective control of the company to Mr. Issac Dabah and he has signed an agreement to sell 2,500,000 shares of Delta to GMM Capital LLC at a price between $8.50 and $10 per share. GMM Capital is controlled by Mr. Dabah.

Delta Galil is a leading global manufacturer of quality apparel sold under brands such as Calvin Klein, Hugo Boss, Nike, Ralph Lauren.

Recognized for product innovation and development, Delta's products are sold worldwide through retailers including Wal-Mart, Marks & Spencer, Target, Victoria's Secret, JC Penney, Hema, and others.

The consideration will be no less than $21,250,000, reflecting a price of $8.50 per share, and will be no greater than $25,000,000, reflecting a price of $10.00 per share. The majority of the consideration will be paid at the closing of the transaction on July 5, 2007. The balance will be paid on December 31, 2008.

After completion of the transaction, Mr. Lautman will continue to hold, through companies under his control, 2,144,993 shares, representing 11.4% of the shares of the Company and after the purchase of the shares from Mr. Lautman, Mr. Dabah will hold, directly and indirectly, a total of 7,855,115 shares of Delta, constituting 41.9% of Delta shares.

Mr. Lautman said, after leading Delta for 32 years since its foundation, I have decided to sell control of the Company to Isaac Dabah. Delta is my lifetime's work. Isaac has vast experience in the textile industry and I trust that he will lead Delta to growth and profitability.

Mr. Dabah, a native of Israel, resides in New York and has been active in the textile and apparel industry for 27 years.

Mr. Dabah said "I am pleased that Dov entrusted me with the control of his lifetime's work. Delta is a global company with growth and profitability potential and together with the excellent management team of Delta and its devoted employees, and under the leadership of Aviram Lahav, we will lead the Company to accomplishments.”

Headquartered in Israel, Delta operates manufacturing facilities in Israel, Jordan, Egypt, Turkey, Eastern Europe, Central America, the Caribbean and the Far East.

Source: Agencies • News Courtesy: BharatTextile.com