Dudu Ezra Group Completes Stop Market Acquisition for NIS 680 Million
Translated & summarized from Globes by baba
The Dudu Ezra Group has completed its acquisition of the Stop Market supermarket chain for approximately NIS 680 million, receiving approval from the Competition Authority. The deal, financed in part by Bank Hapoalim, will result in the group operating 23 supermarkets nationwide. Both chains will maintain separate brands but will integrate logistics and procurement, with plans for expansion including ten new Herzl Market branches. The group anticipates annual sales of NIS 1.5 billion, potentially rising to NIS 2 billion.
The story in 6 lines · by baba
- Dudu Ezra Group acquired Stop Market for approximately NIS 680 million.
- The Competition Authority approved the merger on Sunday.
- Bank Hapoalim is providing NIS 500 million in financing for the acquisition.
- The combined entity will operate 23 supermarkets nationwide.
- The group projects annual sales of NIS 1.5 billion post-acquisition.
- Herzl Market plans to open ten new branches in northern Israel.
The Dudu Ezra Group, owner of the Herzl Market chain, has finalized its acquisition of the Stop Market supermarket chain, founded by Yossi Messiach, for approximately NIS 680 million. The deal received approval from the Competition Authority on Sunday. Bank Hapoalim will provide about NIS 500 million in financing for the purchase.
Following the acquisition, the Dudu Ezra Group will operate 23 supermarkets nationwide, in addition to its existing businesses in fruits and vegetables, logistics, and distribution. The group projects annual sales of NIS 1.5 billion after the merger, with potential growth to NIS 2 billion by the end of 2027 through expansion and new branches.
Stop Market, established 26 years ago, runs 11 large supermarkets, averaging 2,500 square meters, offering premium products and operating seven days a week. Herzl Market operates 12 branches, specializing in fruits and vegetables, and manages approximately 100 fruit and vegetable departments for other retailers through a franchise model. It also operates a logistics center in Kibbutz Ramat Yohanan.
Both chains will continue to operate under their separate brands, but will integrate aspects of their procurement, trade, and logistics systems. This integration is expected to enhance the group's bargaining power with food suppliers and reduce operational costs. Herzl Market plans to open ten new branches within the next year, primarily in northern Israel, including locations in Kiryat Shmona, Hazor HaGelilit, Katzrin, Ma'alot, Acre, Ramat Yishai, Tirat Carmel, and Yehud.
Moshiel Elkiam, CEO of Herzl Market, stated that the deal builds on a prior business collaboration where Herzl Market managed fruit and vegetable departments in Stop Market branches. The group is also considering merging their customer loyalty programs, aiming for a combined club of half a million customers from Herzl Market's current 200,000 members.
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