Delta Galil to Acquire Leading French Men’s Underwear Group Eminence

Expands Delta’s Branded Business and European Market Share

Deal Expected to be Accretive in 2018

TEL AVIV, Israel--()--Delta Galil Industries, Ltd. (DELT/Tel Aviv Stock Exchange, DELTY.PK/OTCQX), the global manufacturer and marketer of branded and private label apparel products for men, women and children, as well as leisurewear, activewear and denim today announced that it has signed an option to acquire Eminence SAS and its subsidiaries (the “Eminence Group”), which includes leading French underwear brands for men, women and children: Eminence and ATHENA and the Italian brand Liabel. The transaction is expected to close in the third quarter of 2018 and is subject to the fulfillment of French law requirements applicable to the transfer of a company (in particular, an obligation to consult with Eminence's works council).

“We are very pleased to look at adding the Eminence Group to our portfolio, as it represents a dominant leader in French men’s undergarments, with strong consumer appeal”

For 2019, Eminence is expected to contribute approximately €100 million of revenue and approximately $0.40 to $0.45 to Delta’s earnings per share, excluding transaction and other deal-related expenses. This transaction would accelerate Delta revenue to exceed $1.5 billion.

Eminence would bring to Delta a men’s premium French brand, which has the second largest men’s underwear market share in France, with products ranging from undergarments to polo and technical shirts to Eminence Tech+. ATHENA adds a sporty and athletic, family mass market French undergarment brand that is modern and cool. In addition to the French brands, the transaction includes Liabel, an Italian brand, founded in 1851, which stands on heritage and tradition and brings strong brand awareness as a mass market Italian t-shirt and underwear brand for the entire family.

In 2017, Eminence Group's net sales totaled approximately 99.0 million Euros, with most of the products designated for men (87%) and the remainder for women (8%) and kids and babies (5%). Most of the Group's sales are to the French market (approximately 79% of all sales) and the remainder in Western Europe – mainly in Italy (17%) and in Belgium (3%) – under leading underwear brands in France (Eminence in the upper market and ATHENA in the mass market) and an Italian underwear brand (Liabel).

“We are very pleased to look at adding the Eminence Group to our portfolio, as it represents a dominant leader in French men’s undergarments, with strong consumer appeal,” said Isaac Dabah, CEO of Delta Galil. “This is a very compelling transaction for Delta that reflects our strategic efforts to expand our branded business and introduce Delta in a significant way to France & Italy where our activities to date have been small. By providing potential synergies in products, innovation and operations, we see this opportunity as a platform for growth.”

About Delta Galil Industries

Delta Galil Industries is a global manufacturer and marketer of branded and private label apparel products for men, women and children. Since its inception in 1975, the Company has continually strived to create products that follow a body-before-fabric philosophy, placing equal emphasis on comfort, aesthetics and quality. Delta Galil develops innovative seamless apparel including bras, shapewear and socks; intimate apparel for women; extensive lines of underwear for men; babywear, activewear, sleepwear, and leisurewear. Delta Galil also designs, develops, markets and sells branded denim apparel under the brand 7 For All Mankind®, and ladies apparel under the brands Splendid® and Ella Moss®. For more information, visit www.deltagalil.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," "may," "intend," "expect" and similar expressions identify such forward-looking statements. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein, and while expected, there is no guarantee that we will attain the aforementioned anticipated developmental milestones. These forward-looking statements are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive and other factors affecting the Company and its operations, markets, product, and distributor performance, the impact on the national and local economies resulting from terrorist actions, and U.S. actions subsequently; and other factors detailed in reports filed by the Company.

Contacts

Delta Galil Industries, Ltd.
Nissim Douek, +972-54-5201178
Nissim@unik.co.il
or
U.S. Media:
Berns Communications Group
Stacy Berns/Danielle Poggi, 1-212-994-4660
sberns@bcg-pr.com

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Release Summary

Delta Galil to Acquire Leading French Men’s Underwear Group Eminence; Deal Expected to be accretive in 2018.

Delta Galil Industries, Ltd.