Terminal X to Acquire Majority Stake in Lifestyle Retailer SOHO

Terminal X, an Israeli e-commerce company, has signed a non-binding memorandum of understanding to acquire a controlling 50.01% stake in the SOHO lifestyle and design retail chain for NIS 11 million. The deal values SOHO at approximately NIS 22 million before adjustments, with up to NIS 8 million of the payment designated for repaying a subsidiary's debt.

This acquisition aligns with Terminal X's strategy of expanding its portfolio through acquisitions, shifting from primarily selling other brands to owning and operating its own. In recent years, Terminal X has invested around NIS 39 million in acquiring controlling stakes in six other companies, including Sistars, Strongpool, and Ada Lorgon.

Terminal X CEO Nir Horowitz recently stated the company is actively seeking businesses with a distinct DNA, aiming to leverage Terminal X's e-commerce, logistics, and marketing infrastructure to grow smaller companies. The company anticipates further acquisitions within the year and has identified jewelry, accessories, nutritional supplements, and home goods as potential growth areas. The SOHO acquisition would significantly bolster its presence in the home goods category.

SOHO, founded in 2004 by CEO Eytan Walach, imports and distributes design and lifestyle products for homes and offices. It operates 12 concept stores, an online store, and a wholesale business, employing approximately 100 people. If the deal is finalized, Walach is expected to continue as CEO, while Terminal X will appoint the majority of the board members. Terminal X also holds options to acquire an additional 37.5% of SOHO's shares between 2028 and 2031, potentially increasing its total stake to 87.51%.

The transaction is still non-binding and subject to due diligence, definitive agreements, and regulatory approval, including from the Competition Authority. SOHO and Walach have granted Terminal X exclusive negotiation rights for 90 days.