Terminal X Cancels Soho Acquisition Deal After Three Weeks
Translated & summarized from Calcalist by baba
Terminal X, a subsidiary of the Fox Group, has canceled its agreement to acquire a controlling stake in the Soho design chain, just three weeks after signing a memorandum of understanding. The deal was called off due to negotiation gaps between the parties. The acquisition would have seen Terminal X purchase 50.01% of Soho for NIS 11 million, with the founder expected to remain CEO.
The story in 5 lines · by baba
- Terminal X canceled its deal to buy a controlling stake in the Soho design chain.
- The acquisition was called off three weeks after a memorandum of understanding was signed.
- Terminal X cited negotiation gaps as the reason for canceling the deal.
- The deal involved Terminal X acquiring 50.01% of Soho for NIS 11 million.
- Soho, founded in 2004, operates 12 stores and employs about 100 people.
Terminal X, part of the Fox Group, has called off its planned acquisition of the Soho lifestyle and design chain. The decision comes just three weeks after a memorandum of understanding was signed for Terminal X to purchase a controlling stake in Soho.
Terminal X cited a gap in negotiations between the parties as the reason for the cancellation. The initial agreement, signed less than a month ago, intended for Terminal X to acquire 50.01% of Soho from its owner and CEO, Eytan Walach, for NIS 11 million. A significant portion of this sum, NIS 8 million, was designated for debt repayment.
The deal was contingent on due diligence and the fulfillment of certain conditions. The memorandum also included options for Terminal X to purchase an additional 37.5% of Soho's shares from Walach between 2028 and 2031, with the exercise price determined by a formula based on net profit or a fixed valuation for those years.
Soho, founded in 2004, operates 12 stores across Israel, employs approximately 100 people, and distributes its products through wholesale channels in addition to retail. The chain offers a variety of international and Israeli design brands. Walach was expected to continue as CEO following the acquisition.
