Dov Lautman sells controlling interest in Delta
Cites failing health as reason for selling. Move made out of 'sense of concern for the company, its employees and future success'
Dov Lautman, chairman and main shareholder of Delta Galil Industries, announced Monday he would be selling his controlling interest in the company to Issac Dabah, vice chairman of the board.
Lautman, who has ALS (amyotrophic lateral sclerosis, commonly known as Lou Gehrigs disease), is no longer capable of remaining at Delta's helm.
Lautman sold GMM Capital, owned by Dabah, 13.3 percent of Delta's shares for somewhere between $21.2-$25 million.
The final selling price depends on Delta's performance in the stock markets and is to be determined by the end of 2008.
Once the deal is finalized Dabah would own 42 percent of the company. Lautman still holds 11.4 percent of Delta.
A life's work
Lautman, 70, won the Israel Prize for lifetime achievement and special contribution to society and the State of Israel in 2006.
A veteran of 40 years in the textile business, Lautman formed Delta in 1975, and has been its chairman ever since.
Issac Dabah, who has 27 years of experience in textiles, joined Delta in 2005. His holdings include 15 percent of a privately owned family business, a chain of retail stores in the US and additional textile companies around the world.
"Delta is my life's work. In light of my health and out of concern for the company, its employees and its future success, and after giving the matter much thought, I have decided to sell controlling interest to Dabah," said Lautman Monday.
Lautman's Delta has not been doing so well: the company lost $35 million in 2005, made only $3 million in profits in 2006 – out of $700 million in sales.
Seeing how the textile industry is struggling worldwide, Delta is facing some serious cutbacks, which may result in hundreds of layoffs.
