Kadma Fund in Advanced Talks to Acquire 50% of Shumsom Health Food Chain

Kadma Fund is in very advanced negotiations to acquire a 50% stake in the Shumsom (ShumSUM) health food restaurant chain from its founder, Tomer Elon. Kadma plans to inject tens of millions of shekels into the company, with a similar amount going to Elon as an exit payment. The deal also includes future conditional payments and options for additional share purchases.

Shumsom, founded by Elon in 2014, currently operates 24 branches in the Gush Dan area of central Israel and aims to expand to 30 branches by the end of 2026. The capital infusion from Kadma will support this expansion. The chain also has a factory in Holon where it produces some of its menu items.

This potential acquisition highlights a broader trend of Israeli investment funds acquiring stakes in food service companies. In recent years, financial investors have shown significant interest in the sector. Notable deals include a NIS 200 million investment by Bank Leumi's Partners division in the Japannika Japanese food chain, and a NIS 120 million investment by Leumi Partners and Mor Investment House in the Mimi-Nunu food chain. Green Lantern acquired 50% of the Biscotti chain for NIS 250 million, and a group of investors purchased a third of Kisu restaurants for NIS 350 million.

Kadma Fund, managed by Gilad Halavi, Gilad Shavit, and Uri Einan, has a diverse portfolio including Keter Plastic, Zriha Group, Carmel Wineries, and the IT and cellular company C-Data. In August, the fund sold its 69.9% stake in Multi Retail for approximately NIS 166 million and, along with Kobi Friedrich, acquired the indebted lighting company Gaash LED.