Discount Capital Acquires 20% Stake in Natan Services Group for $14 Million

Discount Capital, the investment arm of Discount Bank, is acquiring a 20% stake in the Natan Services Group for 42 million shekels (approximately $11.3 million), sources told Calcalist. The investment values Natan at 210 million shekels ($56.4 million) and comes as Natan employs 3,200 people. This marks the first deal for Discount Capital under its new CEO, Michal Kissus, who took office at the beginning of the month, though the deal was initiated before her tenure by investment manager Hanoch Papushdo.

Natan Services Group specializes in managing, cleaning, security, and maintenance for 6 million square meters of buildings. The company has seen significant revenue growth, with 2024 revenues reaching 510 million shekels ($137 million), projected to hit 580 million shekels ($155 million) in 2025, and an annual run rate of 670 million shekels ($179 million) in 2026.

Brand, a public company controlled by Liran Giladi, previously acquired 60% of Natan in November 2025 for 76 million shekels ($20.3 million), valuing the company at 127 million shekels ($33.9 million). Brand later exercised an option for an additional 40% stake for 64 million shekels ($17.1 million) and invested another 21 million shekels ($5.6 million), bringing its total investment to 161 million shekels ($43 million).

Following Discount Capital's investment, Brand will hold 80% of Natan. Brand's initial equity contribution of 50 million shekels ($13.4 million) has now appreciated to approximately 168 million shekels ($45 million) based on the current deal valuation, reflecting substantial growth in less than a year. Brand has appointed Eli Aharoni as Natan's chairman and Itai Ben Avi as its CEO. Natan's order backlog stands at 2.2 billion shekels ($588 million) through 2030. Brand itself has a market capitalization of 155 million shekels ($41.4 million) and recently sold its renewable energy operations in Poland and Italy for approximately 33.5 million shekels ($8.9 million), expecting a 19 million shekel ($5 million) profit.