Delta to purchase Germany's Schiesser

Fashion manufacturer will pay €68 million for leading German underwear brand

Fashion company Delta Galil announced Wednesday it was purchasing Germany's leading underwear brand, Schiesser, for €68 million. Delta will purchase 100% of Schiesser's shares, the company said.

 

According to the company's estimates, the purchase will be finalized by July 2012. Of the €68 million, 10 million will be invested in shares' capital, and the rest will be used to pay the company's debt. The completion of the deal is pending the approval of the antitrust supervisor in Germany.

 

Delta predicts its European activities will grow from 24% to 40% following the deal. The total sales to North America are expected to drop from 62% to 49% following the acquisition. According to company's estimates, the acquisition will increase the company's profitability in 2012, contributing 25-30 cents to stock profit annually.

 

Shiesser is a privately owned company undergoing dismantling since 2009. The company designs, manufactures and markets underwear. In 2011 the company's revenue was €132 million with an operating profit of €8.3 million. In 2010 the company's revenue was €130.9 million and the operating profit was €8.4 million.

 

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