Delta Galil has inked a deal to buy intimates online retailer Bare Necessities in a move the Israeli apparel major says will enhance its digital presence.
The transaction, the terms of which were not disclosed, is expected to close in the next few weeks and be accretive to earnings next year.
Established in 1998, with headquarters outside New York City, Bare Necessities offers more than 160 brands and 6,400 styles in intimates, women’s swimwear, shapewear, lingerie, sleepwear, and hosiery.
Its product offering spans Wacoal, Chantelle, Spanx, Calvin Klein and Miraclesuit, with exclusive collections including Birdsong and Camio Mio. Following the deal, the site will also offer Delta Galil’s own brands.
“This transaction reflects our strategic growth objective to diversify our distribution channels. 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,” says Isaac Dabah, CEO of Delta Galil. “Bare Necessities can significantly enhance Delta Galil’s presence in the digital world, as we continue to pursue growth online.”
The acquisition is Delta Galil’s second in just over a year, with the manufacturer and marketer of branded and private label snapping up Hong Kong-based intimate apparel manufacturer The Bogart Group in June of last year.
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Its latest purchase comes after the firm reported a net loss for the second quarter as sales fell by more than 20% but said it expects to return to profit over the next three months.