Isaac Dabah and Dov Lautman signed a deal Monday for the transfer of 13.3 percent of the shares in Delta Galil Industries to Dabah for $21.5-$25 million, reflecting a share price of $8.50-$10. Following this deal, Dabah's holdings increased to 41.9 percent, making him the controlling shareholder. Lautman, who founded the company, reduced his own holdings to 11.4 percent. News of the deal boosted the company's share price. When the deal is completed Lautman will announce his resignation as board chair. Delta's board, which approved the deal, also approved Dabah's appointment as Delta's new chairman. Dabah plans to change the company's strategy, in an effort to put it back on a track of profitability and growth. Instead of manufacturing products for other internationally renowned brands, Dabah will focus on manufacturing well-known brands under license and marketing them directly to consumers. "The first thing I will do at Delta will be to increase its profitability," said Dabah Monday, with the publication of his acquisition of the controlling stake in Delta.
How will you increase profitability?
"We will be more aggressive in promoting the company's growth," said Dabah. "At present, 90 percent of sales are to brand name companies." Dabah explained that such operations provide low profits to the manufacturer and higher profits to the ordering company. "We are currently negotiating with several companies and within a few months will receive licenses to manufacture their brands," continued Dabah. "The profit from manufacturing brands is much higher."
Why did you decide to buy the controlling stake in Delta?
"After years of working alongside Lautman, I think [Delta] is a wonderful company with potential and a future, with an opportunity to increase its profitability."
Dabah, 48, was born in Jerusalem to a family originally from Aleppo, in Syria, and which left Israel when Dabah was 10. He currently lives in New York but plans to continue coming to Israel every two months for a week.
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