Delta, controlled by Dov Lautman, today announced its acquisition of the assets and part of the liabilities of Dominion Hosiery Mills (DHM) of Canada. DHM deals in production of hosiery, mostly for women, and in marketing it in the US and Canada. DHM has a plant in the Toronto area in which all its manufacturing activity takes place, from product design to dyeing, finishing, and consumer packaging.
Delta will pay 13.5 million Canadian dollars for DHM (US $9.3 million). Delta notes that DHM's 1999 sales turnover totaled US $15 million. The company added that it will receive DHM's North American sales channels as part of the deal.
DHM's customers included the following marketing chains: The Gap, The Limited, JC Penney, Macey's, Kobi's, and Talbor's (all in the US), as well as WalMart, Sears, Dylex, and Northern Elements in Canada. Delta's million 1999 sales turnover, estimated at $350, included $70 million of exports to the US and Canada; Delta, however, does not currently export hosiery to the North American market. Delta's hosiery sales, which amount to $55 million per year, are mostly to the European market, including Marks & Spencer, with some in Israel.
Delta's management's stock exchange announcement stated that the company expects that the acquisition will make a positive contribution to its profitability.
Published by Israel's Business Arena on January 18, 2000