Ronen Ganon Acquires Control of Retail Group Holding ACE, Beitili, Auto-Depo

The Israeli Antitrust Authority has approved the acquisition of Multi Retail Group, the parent company of popular brands ACE, Auto-Depo, and Beitili, by Haredi real estate developer Ronen Ganon and his Ganon Group. This marks the most significant retail sector deal in Israel recently, with Ganon officially becoming the controlling shareholder.

Ganon purchased 72.3% of Multi Retail for NIS 173 million, valuing the company at approximately NIS 238 million. The remaining shares are publicly held. Ganon, who owns a chain of neighborhood supermarkets and co-owns the discount chain Zol Stock, plans to transform ACE into an "Israeli Costco," offering a wide range of products, including dry goods, at reduced prices. He aims to increase direct imports, improve trade and purchasing terms, strengthen online operations and data management, and optimize inventory control.

Ganon stated his intention to focus on expanding direct imports, enhancing trade and purchasing conditions, bolstering online and data activities, improving inventory management, and leveraging the group's scale and national presence. He previously expressed his vision for ACE to become the "Israeli Costco," selling diverse categories, including food, at lower prices.

This acquisition significantly expands Ganon's retail footprint, bringing his group control over a public company with well-known brands, a large customer base, and substantial infrastructure in trade, digital, and logistics. His experience developing Zol Stock in areas like trade, purchasing, import, logistics, and inventory management is expected to be applied to improving Multi Retail.

Strategic considerations include a potential future merger between Multi Retail and Zol Stock. Such a combination could create a large retail group spanning discount, DIY, home goods, automotive, furniture, and online sectors, with an estimated combined revenue of NIS 1.7 billion and around 155 stores nationwide. The company also intends to pursue an IPO in the future, though no decision has been made. David Saban, representing the owners and overseeing retail operations for the Ganon Group, was instrumental in the deal and is expected to join Multi Retail to support its growth and improvement.