Schiesser, the German underwear giant whose impending IPO we reported on last month, has abruptly canceled floating shares of its stock publicly, and will instead be sold to Delta Galil Industries Ltd. (DELT.TV), a global apparel manufacturer based in Israel and the U.S, Dow Jones has reported.
“Schiesser would have been a promising stock, but the volatile market environment would have offered less advantages than (the sale to) long-term oriented investor Delta Galil,” Schiesser supervisory board head Volker Grub said in a statement on Wednesday.
Delta Galil CEO Isaac Dabah said the acquisition will widen Schiesser’s international prospects, giving it access to leading international retailers and innovative manufacturing technologies. “We have the resources and the experience to decisively further advance Schiesser through the integration in our network. Together with Schiesser, our annual sales will be about US$900m. We are thrilled to welcome the Schiesser team to Delta Galil and are confident in our future success together,” said Dabah.
Schiesser had only emerged from insolvency in 2010, and had spun its upcoming IPO as a sign that rocky days were behind it. However, the tumultuous recent fate of the Euro might have contributed to the “volatile market environment” that Grub referred to.