Terminal X to Acquire Control of Home Design Retailer SOHO

Terminal X, a subsidiary of the Fox Group, is set to acquire a controlling stake in the home design product chain SOHO. The company announced it has signed a non-binding memorandum of understanding with Collection Design Tel Aviv Ltd., the owner of SOHO, and its owner and CEO Eytan Valach, for the purchase of 50.01% of the retail chain. Terminal X will pay SOHO's owners NIS 11 million, of which NIS 8 million will be used to repay debt. The deal is contingent on due diligence and the fulfillment of certain conditions.

Under the agreement, Terminal X will also receive options to purchase an additional 37.5% of SOHO's shares from Valach between 2028 and 2031. The exercise price will be determined by the higher of an agreed-upon multiple of the relevant calendar year's net profit or a fixed valuation ranging from NIS 30 million in 2028 to NIS 70 million in 2030 or 2031. SOHO's founder will continue to serve as CEO for the time being.

Fox Group will have the right to appoint the majority of SOHO's board members. While most board and general assembly decisions will require a simple majority, certain special resolutions will need a supermajority. SOHO and the sellers have committed to exclusive negotiations with Terminal X for 90 days from the memorandum's signing.

Founded in 2004, SOHO employs approximately 100 people and imports and distributes lifestyle products for home, office, and personal use. The chain operates 12 concept stores, an online site, and also distributes products wholesale, featuring various international and Israeli design brands. This acquisition aligns with Terminal X's expansion strategy of acquiring controlling stakes in independent brands, following previous acquisitions of fashion and jewelry brands.