Shook Herzl Acquires Stop Market for 680 Million Shekels
Translated & summarized from Calcalist by baba
Supermarket chain Shook Herzl is acquiring Stop Market for 680 million shekels, a deal that will combine 23 branches nationwide. Shook Herzl plans to open ten new branches, projecting combined annual sales to reach 1.5 billion shekels and potentially 2 billion by 2027. The merger aims to create operational efficiencies, increase purchasing power, and expand customer loyalty programs. Bank Hapoalim is financing approximately 500 million shekels of the acquisition.
The story in 6 lines · by baba
- Shook Herzl is acquiring Stop Market for 680 million shekels, combining 23 branches.
- The acquisition is expected to increase combined annual sales to 1.5 billion shekels, with a goal of 2 billion by 2027.
- Shook Herzl plans to open ten new branches across Israel following the acquisition.
- The merger aims to enhance purchasing power, streamline logistics, and improve operational efficiency.
- Bank Hapoalim is providing 500 million shekels in financing for the deal.
- The combined customer base is projected to grow to half a million members.
Supermarket chain Shook Herzl, owned by Dudu Ezra Holdings, is acquiring Stop Market for 680 million shekels. The deal, initially reported by Calcalist, will see both chains continue to operate independently, currently comprising a total of 23 branches nationwide.
Shook Herzl plans to expand its operations by opening ten new branches in various locations across Israel, including Yehud, Kiryat Shmona, and Acre. Dudu Ezra Holdings estimates that following the acquisition, the combined annual sales of both chains will reach approximately 1.5 billion shekels. With the planned expansion and new branches, the group anticipates sales will hit an annual pace of 2 billion shekels by the end of 2027.
The group expects operational and commercial advantages from the merger, such as increased purchasing power with suppliers, integration of procurement, trade, and logistics systems, and headquarters efficiency. The fruit and vegetable sector is anticipated to be a key area of collaboration, leveraging Dudu Ezra Holdings' expertise in this field for procurement, supply, and distribution across Stop Market's operations.
Shook Herzl, established in 1989, currently operates 12 branches and approximately 100 fruit and vegetable departments under franchise agreements. Stop Market, founded 26 years ago by Yossi Meshiah, operates seven days a week and employs around 900 staff.
Moshiel Elkiam, CEO and owner of Shook Herzl, stated that the merger is a significant strategic step towards building a strong, leading, and widely distributed food retail group. He highlighted the existing successful business partnership where Shook Herzl manages some of Stop Market's fruit and vegetable departments, and their deep understanding of the chain's operations. Elkiam also noted that Shook Herzl's customer club has over 200,000 members, and the merger aims to create a joint club with half a million members.
"The unification of forces will allow us to leverage the advantages and capabilities of both chains, strengthen purchasing power, streamline operational activities, and accelerate the group's expansion, while improving profitability and continuing to create value for our customers," Elkiam added. He sees this move as central to their vision of becoming one of Israel's most significant food retail groups.
A dedicated company owned by Dudu Ezra Holdings was established for the acquisition. Bank Hapoalim is financing the deal, providing the group with approximately 500 million shekels. Shmulik Arbel, Deputy CEO and head of the business division at Bank Hapoalim, called the deal a significant milestone in Israel's food and retail sector and affirmed the bank's commitment to supporting leading Israeli companies.
Shook Herzl was advised on the transaction by the law firm A. Zohar & Co., led by Ilan and Efrat Zohar. Bank Hapoalim was advised by lawyers Eli Eliya and Hana Attias from Gornitzky & Co.
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