Dudu Ezra Group Acquires Stop Market Chain for $165 Million

The Dudu Ezra Group, owner of the Herzl Market supermarket chain, has signed an agreement to purchase the Stop Market chain for 600 million shekels (approximately $165 million). This acquisition will create a combined entity operating 22 branches with annual revenues of around 1.5 billion shekels.

This deal represents a significant exit for the Messiach family, who founded and own Stop Market. Stop Market, established 26 years ago by Yossi Messiach, generates 880 million shekels in annual revenue, with 60 million shekels in annual EBITDA and 40 million shekels in net profit. The chain employs approximately 250 people and focuses on larger branches with premium products, operating seven days a week.

The negotiations for the deal, first reported in March, culminated this week with the signing. Dudu Ezra Group will secure nearly 500 million shekels in financing from Bank Hapoalim for the transaction. Bank Hapoalim's investment arm, Poalim Equity, will not be a shareholder.

Dudu Ezra, who founded his holding group in 1990, plans to take the merged company public on the stock exchange no earlier than 2028, following an expansion plan. He aims for an ambitious valuation of 2 billion shekels, acknowledging potential operational and macroeconomic risks.

Ezra's group currently operates about 100 fruit and vegetable departments under franchise agreements with various retailers, including a business relationship with Stop Market. They also run the 11-branch Herzl Market chain, with five more slated to open soon. The group acquired Herzl Market in 2021 and has since transformed it into a full-service supermarket chain. Additionally, they manage fruit and vegetable departments in numerous kibbutzim and operate a 4,500-square-meter logistics center in Kibbutz Ramat Yohanan.