Kadma Fund in Advanced Talks to Acquire Half 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 representing an exit for Elon. The deal also includes deferred payments and options for additional shares.

Shumsom, established by Elon in 2014, currently operates 24 branches in the Gush Dan area and aims to expand to 30 branches by the end of 2026. The capital infusion from Kadma is intended to fuel this expansion. The company also operates a factory in Holon where it produces some of its menu items. Nir Tzarfati, a junior partner at Kadma, is leading the transaction for the fund.

The food service sector has attracted significant interest from Israeli investment funds in recent years. Notable deals include a NIS 200 million investment by Bank Leumi's Partners in the Japanese food chain Japnika, and a NIS 120 million investment by Leumi Partners and More Investment House in the Mimi-Nunu chain. Green Lantern acquired a 50% stake in Biscuti for NIS 250 million, and a group of investors purchased a third of Kisu restaurants for NIS 350 million.

Kadma Fund, managed by Gilad Halevi, Gilad Shavit, and Uri Einan, has a diverse portfolio including Keter Plastic, Zricha Group, Carmel Winery, and C-Data. In August, the fund sold its stake in Multi Retail for approximately NIS 166 million, sold its stake in the plastic company Plasfit, and co-acquired the indebted lighting company Gaash LED.