VF Corporation has long been an important stakeholder in the denim market, as the owner of heritage brands Lee and Wrangler, as well as 7 for All Mankind, one of the brands that launched the beginning of the premium denim market.
VF Corp. has now announced that it is selling its contemporary brand portfolio, which includes 7 For All Mankind, Splendid and Ella Moss, to Israeli apparel company Delta Galil Industries, Ltd.
VF Corp. is selling the portfolio for $120 million with the transaction expected to close in the third quarter of 2016.
The company’s stock fell 13 percent in the last year to $60.63 according to the Wall St. Journal. WSJ also noted that Delta Galil stock was down 16 percent in the past 12 months, but gained 13 percent upon the announcement of the sale.
Eric Wiseman, VF chairman and CEO, said, “Earlier this year we said that we are taking a focused and proactive look at the composition of our business portfolio 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.”
This is Delta Galil’s largest acquisition to date and has increased the company’s branded portfolio 65 percent. Delta Galil is a global manufacturer and marketer of branded and private label apparel products for men, women and children. The company primarily works with underwear, intimate apparel and sleepwear.
Isaac Dabah, Delta Galil CEO, said, “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. We see tremendous opportunity to expand the brands’ platform for growth through continued focus on superior quality, design and innovation.”