VF Corporation has signed a definitive agreement to sell its Contemporary Brands businesses to Israeli group Delta Galil Industries, Ltd. Brands. The transaction includes the brands 7 for All Mankind, Splendid and Ella Moss.
VF’s chairman and CEO Eric Wiseman explained that since the beginning of 2016 they wanted to reorganize the composition of their business portfolio. “We wanted to ensure that we are well positioned to maximize VF’s growth and return to our shareholders. This announcement illustrates that our work as active portfolio managers is progressing.”
In 2015 the Contemporary Brands division had lost 14% sales totalling USD344 million compared to the USD400 million of 2014. In 2016 first quarter revenues were down 15% to USD74 million, including a 53% decline in operating income.
For the transaction, which is expected to close in the third quarter of this year, the selling price is USD120 million. From this operation Delta Galil expects to increase its sales of USD300 million.
“This transaction reflects our strategic efforts to grow Delta Galil’s branded business and expand our global footprint,” said Isaac Dabah, CEO of Delta Galil. “We are thrilled to be adding three renowned premium brands to our portfolio, as they further diversify our product offering and distribution channels, while adding significant strength to our structure.”
Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children and develops seamless apparel including bras, shapewear and socks, underwear for women and men, activewear, sleepwear and leisurewear.
7 For All Mankind is a women’s and men’s premium denim brand founded in 2000 and includes sportswear, footwear, eyewear, handbags, belts and kids. Splendid and Ella Moss are U.S. premium sportswear brands focused on contemporary knit tops.