Delta Galil — M&A Activity 2025

Oct 19, 2025

DAILY DRILLS OVERVIEW

Founded in 2021 in Los Angeles.

Digitally native lifestyle apparel brand targeting Gen Z and Millennials. Co-founded by two highly-talented influencers with strong social followings and deep experience in content-driven brand building.

Business Model

Bi-weekly "drop" model, launching curated, seasonless collections to drive urgency, loyalty, and repeat purchases.

Product Mix

Mainly Loungewear & Activewear - designed for seamless integration with past collections to encourage ongoing wardrobe building.

Sales Channels: Majority of sales via a proprietary app downloaded by highlyengaged customers.

DELTA x DAILY DRILLS - STRONG STRATEGIC FIT

• Loungewear Expansion Deepens Delta's penetration into the loungewear category.
• High-Growth, Profitable E-commerce brand with highly-engaged, growing consumer base with repeat rate of 67%.
• Product Expansion via Delta Expertise Introduce new categories (intimates, activewear, accessories) leveraging our design, R&D and product development capabilities.
• Sourcing & Margin Optimization Delta's global sourcing network will enhance gross margins and scale profitability.
• Platform for Gen Z & Millennial Consumer establishes a strong foothold with U.S. younger consumers.
• The deal expected to be accretive in Year 2025

DEAL FINANCIAL HIGHLIGHTS

• Delta is acquiring Daily Drills from the 2 founders who will continue to lead the business.
• Total consideration of \$65M and potential future earnout & bonus in the coming 4 years ~\$37M.
• Daily Drills expected sales of ~\$36M and adj. EBITDA of \$16.6M in 2025.

SALES & EBITDA BY YEAR (\$M) DAILY DRILLS

FINANCING

100% self financing using available bank credit facility

	Dec-23	Dec-24
Net Debt (\$MM)	123.4	126.5
Net Debt / CAP	11.1%	11.6%
Net Debt/TTM EBITDA*	0.7	0.6

Jun-25 Before the deal	Jun-25 After the deal
191.4	256.4
16.3%	20.6%
0.9	1.1

^* Excluding IFRS16 impact