Delta Galil Industries has agreed to purchase Hong-Kong-based Bogart Group, in exchange for assumption of Bogart’s $105 million debts; including a loan for $26 million given to Bogart by Delta. However, if Bogart shows profits of at least $20 million annually, Delta will pay the owner of Bogart between 10-20% the value of the company yearly, until 2024. Bogart’s value will be determined based on 6 times EBITDA, less any financing costs. Bogart designs and produces lingerie and fashion bras for high-end American chains, such as: Victoria Secret, Lane Bryant, Tommy Hilfiger, and more.
Bogart’s sales this past year (2018) totaled 230 million, as compared to 232 million the year before. Bogart’s profits totaled $12 million in 2018 and $20 million the year before. Due to cash flow problems, Bogart’s sales dropped during the first quarter of 2019. Those cash flow problems