Menora Evergreen Enters Food Sector with Peanut Marketing Acquisition

Investment fund Menora Evergreen is set to acquire Peanut Marketing for NIS 120 million, marking its first foray into the food industry. The deal will see Menora Evergreen partner with Peanut Marketing's CEO, Doron Ashkenazi, who will co-invest in the acquisition. The transaction involves the sale of all company shares, with Tene Fund selling 51%, Tnuva 24.5%, and The Amir Group along with the Levanon family selling the remaining 24.5%. Peanut Marketing's EBITDA stands at NIS 24-25 million annually, making the deal reflect a multiple of 5 on its EBITDA.

Tene Fund, which holds 84% of Peanut Marketing's subsidiary Tnuvot HaSadeh, will sell its stake. Tnuvot HaSadeh processes 14,000 tons of peanuts annually, markets 60-70% of Israel's peanuts, and exports 60% of its output to countries including the Netherlands, Italy, Germany, and Switzerland. The subsidiary also handles 5,000 tons of almonds and a similar quantity of dates.

Peanut Marketing, established in 1955 as a partnership between Tnuva and The Amir Group, has undergone several ownership changes. Tene Fund initially acquired its 51% stake in 2016 for NIS 125 million, but later attempted to cancel the deal due to disputes over business data, eventually reaching a compromise. In recent years, the company sold its industrial plant in Be'er Sheva for NIS 40 million in a sale and lease-back agreement, continuing to lease the facility for NIS 2.85 million annually.

Menora Evergreen, founded in 2023 by former Leumi Partners executives Avi Ortal, Yuval Zeira, and Lilach Katz, focuses on acquiring and enhancing medium-sized Israeli companies. The fund has recently invested in infrastructure firm Argil and control systems company Ord, and acquired a 50% stake in nursing services company Natan. Menora Evergreen has raised NIS 1.5 billion from institutional and private investors and has previously achieved an exit from defense company RP Optical.