Israeli-based Delta Galil Industries reported Wednesday (Aug. 26) it had acquired the Bare Necessities intimate apparel business from Walmart for an undisclosed sum.
The deal is expected to close in the next few weeks and the business will be added to earnings next year, according to Isaac Dabah, CEO of Delta Galil.
New Jersey-based Bare Necessities was acquired by Walmart in October 2018 in an effort by Marc Lore, CEO of Walmart eCommerce, to strengthen the e-commerce business with a wider array of apparel and category expertise. But the strategy has somewhat been abandoned in recent years as Walmart tries to rein in losses in this part of the business. Walmart folded its Jet.com business into Walmart.com earlier this year, has sold the chic clothing retailer ModCloth and is reportedly shopping the Bonobos business.
Walmart did not immediately comment on the Bare Necessities divestiture as of late Wednesday. There was no mention of the change in ownership on the Bare Necessities site as of Wednesday.
Bare Necessities offers more than 150 brands of intimate wear from bras and under-garments to swimwear and lingerie. Dabah said following the closure of this deal the site will also offer Delta Galil brands.
“This transaction reflects our strategic growth objective to diversify our distribution channels. As the digital space currently represents the fastest-growing segment in our industry, we are very pleased to acquire such an authority in online intimates. Bare Necessities can significantly enhance Delta Galil’s presence in the digital world, as we continue to pursue growth online,” said Dabah.” I look forward to partnering with the senior leadership of Bare Necessities to achieve strong, profitable growth.”