Sugat, the veteran Israeli food company, is widening far beyond its traditional sugar, salt and pulses business through a rapid acquisition drive and a new public-market profile. The company was floated about six months ago at a valuation of about 1.2 billion shekels, and it has since kept buying brands and businesses to deepen its reach in the food market.
CEO Guy Profer, 49, said in his first interview that the company is seeking firms that can create synergies or open new categories, rather than troubled assets. Since the current strategy began in 2019 under Fortissimo Capital, Sugat has completed acquisitions worth more than 300 million shekels, including Otsar HaZayit, Milmor, Al-Arz, Prag, Al Nakhleh and Pop Star. It is also set to buy Filtuna for 55 million shekels and recently signed a binding agreement to purchase 50% of EuroCheese and EuroStandard for about 140 million shekels, which would move it into chilled imports and distribution.
Profer said the company usually buys at an EBITDA multiple of 6 to 7 and expects costs to fall after integration. He stressed that the business is not trying to push food inflation, saying, “We do not think Sugat is causing the cost of living, on the contrary.” On pricing, he said rising commodity, shipping, labor, fuel and foreign-exchange costs are reflected over time in market prices, and that competition still constrains pricing even after the IPO.
The company reported about 939 million shekels in revenue in 2025, down 1% from 2024, but adjusted net profit rose 65% to about 66 million shekels. In the first quarter of 2026, revenue was 254 million shekels, about flat year on year, while adjusted profit jumped nearly 90% to 31 million shekels. Despite that, the stock has largely traded near its offer price, unlike other recent food IPOs. Profer said he is not focused on the share price, adding that “over time, the results will be worth the value.”
