Lingerie maker Delta Galil Industries Ltd. (Pink Sheet: DELTY; TASE: DELT) has completed its acquisition of active performance socks manufacturer Gibor Sports Active Wear Ltd., including plant, inventory, and customer contracts. Headquartered in Netanya, Gibor Sports has factories in the Galilee, Jordan, and Turkey.
Delta Galil added that it expects the acquisition to double its sock sales to Nike Inc. (NYSE: NKE) to NIS 90 million a year, 80% of which will be in Europe and the rest in the US, thereby becoming a key socks supplier to the sports goods manufacturer.
Delta Galil's socks sales totaled $106 million in 2008, amounting to 17% of total sales.
Gibor Sports Active Wear is expected to fire employees following its takeover. Delta Galil promises to employ 60 Gibor Sport factory workers for six to twelve months, subject to the terms of the deal.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2009
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