Lingerie maker Delta Galil Industries Ltd has bought Israeli sock manufacturer Gibor Sports Active Wear Ltd in a move that will boost its annual sales to Nike by US$22.5m.

Delta Galil is buying Gibor's sock-making machinery and equipment, its inventory and customer base, and its subsidiary business Gibor Jordan.

However, workers at Gibor's factories in Kiryat Shmona and Netanya will be dismissed, and work transferred to other production sites.

Delta Galil says the acquisition will broaden its activity in the sock market, in particular making it the latest supplier of performance socks to Nike.

It also expects to be able to enter the market for football socks.