Tefron Ltd, one of the world's leading producers of seamless intimate apparel and active wear, announced that it has closed the sale to AlbaHealth LLC of its ownership interest in AlbaHealth, which manufactures and sells textile healthcare products.
Under the terms of the transaction, Tefron will receive aggregate consideration of approximately US$13 million, consisting of approximately US$10 million payable in cash and US$3 million pursuant to the terms of an unsecured subordinated promissory note, the principal amount of which will be due August 31, 2009.
The note will bear annual interest at LIBOR plus 3 percent, and the payment of the note will be subordinated in favor of AlbaHealth's senior bank lenders.
Yos Shiran, Tefron's Chief Executive Officer, said: "I am pleased with this strategic step. The transaction will allow us to better focus our efforts on our core businesses - intimate apparel, active wear and swim wear. The completion of the transaction will also improve our balance sheet by reducing debt and increasing cash."
Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, The Gap, Banana Republic, Target, Warnaco/Calvin Klein, Patagonia, Reebok and El Corte Englese, as well as other well known retailers and designer labels.
The company's product line includes knitted briefs, bras, tank tops, boxers, leggings, crop, T-shirts, nightwear, bodysuits, swim wear, beach wear and active-wear.
The Company's Healthcare Division manufactures and sells a range of textile healthcare products.