Delta Galil Industries Ltd. (Pink Sheet: DELTY; TASE: DELT) today announced that its negotiations to acquire the jeans business of Jones Group Inc. (NYSE: JNY) have been suspended without reaching a deal. In October, "Globes" revealed that Delta Galil was in talks to buy the company for $350-400 million.
Delta Galil called off the talks due to the weakness in Jones Group's jeans business. Jeans sales fell 19% to $187 million in its fiscal quarter ending in October 2011, and the division's profit fell 58% to $9 million. Sales by Jones Group's other divisions rose by 2% to $1.04 billion, and its profit rose 41% to $41 million.
Delta Galil, run by CEO Isaac Debah, said, "The company will continue to seek other growth opportunities through organic growth or acquisitions."
Delta Galil's share price fell 6.8% on the TASE today to NIS 26.07, giving a market cap of NIS 611 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012