Israel-based apparel major Delta Galil has acquired Hong Kong-based intimate apparel manufacturer The Bogart Group, a strategic supplier to brands including Victoria’s Secret, PVH, Jockey, Adore Me, Vanity Fair and Hanes.
With $230m in consolidated sales in 2018, Bogart is a vertically integrated specialist in the design, development and manufacturing of fashion bras, and one of the top leading names in intimate apparel, sports and swimwear.
In addition to The Bogart Group, Delta Galil will acquire the company’s subsidiaries Brunet, a leading lace manufacturer; and B&B, a leading padding manufacturer.
The deal is expected to show a profit in the second half of 2019 and to be accretive to earnings in 2020. The acquisition is expected to close in the beginning of Q3.
“We’re very pleased to be adding The Bogart Group to our strong portfolio of intimate apparel, as expanding our footprint in the bra category has been a long-term goal,” says Delta Galil CEO Isaac Dabah.
“This is a unique strategic opportunity, where I see great potential for Delta to leverage Bogart’s strong market position to further build its company, while also helping Delta’s business units expand to the next phase of growth.”
Last month Delta Galil’s profits slumped 59% to US$3m which it attributed to negative currency impact and the timing of holiday sales. Revenues, however, were 9% higher at US$365.4m.
In recent years the company has made a number of acquisitions in the intimate apparel space. Last summer it moved to acquire French undergarment maker Eminence Group. Two years earlier it expanded its portfolio with the acquisition of VF Corp’s Contemporary Brands business – including upscale denim brand 7 For All Mankind, and women’s sportswear brands Splendid and Ella Moss – in a deal worth US$120m.
Delta Galil is among the largest apparel makers in the world, and last year CEO Isaac Dabah spoke with just-style about how innovation is the company’s driving force.
just-style has also covered developments at The Bogart Group, including its expansion into Myanmar, where it was the first international lingerie manufacturer to set up, and the opening of a new training centre in the country.