Delta Galil USA is responsible for 40% of Delta Galil Industries' revenue.
Delta Galil USA Inc. has obtained a valuation from Ernst & Young Israel Ltd. that nearly equals the value of its parent, Delta Galil Industries Ltd. (Bulletin Board: DELTY; TASE: DELT): $104 million compared with $105 million. Delta Galil USA's balance sheet total was $81 million at the end of 2007.
Delta Galil USA has made a number of acquisitions over the years, and is now responsible for 40% of Delta Galil's revenue. Delta Galil USA posted a net profit of $2.7 million on $262.8 million in 2007.
The Israel Securities Authority demanded the valuation so that Delta Galil's investors would have the same information about the company as its insiders. If the valuation of Delta Galil USA was found to be less than its balance sheet value of $81 million, Delta Galil Industries would have to write off the difference in the goodwill item of its profit and loss statement.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2008
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