Ralko Eyes Acquisition of Loss-Making Solar Firm Linked to Owners' Son
Translated & summarized from Calcalist by baba
Publicly traded Ralko is seeking shareholder approval to acquire Ralko Energy, a solar systems company previously owned and managed by the son of Ralko's controlling shareholders. Despite Ralko Energy's reported losses since 2023, Ralko's board cites strategic synergy and growth potential in renewable energy. The acquisition's financial terms are complex, involving contingent payments and potential indirect benefits to the controlling family's son. Ralko, a home appliance importer, reported increased profits in the first half of 2026.
The story in 6 lines · by baba
- Ralko plans to acquire Ralko Energy, a loss-making solar firm linked to its controlling shareholders' son.
- Ralko Energy has incurred losses since at least 2023, impacting its core solar component sales.
- Ofir Rosiak, son of Ralko's owners, previously controlled and managed Ralko Energy.
- Ralko's board claims the acquisition offers strategic synergy and growth in the renewable energy sector.
- The purchase price is contingent on Ralko Energy's future profitability, minimizing upfront investment.
- Ralko reported a 60% increase in net profit for the first half of 2026.
The public company Ralko, a leading importer of home appliances, is seeking shareholder approval to acquire Ralko Energy, a company specializing in solar and storage systems. Ralko Energy was until recently controlled and managed by Ofir Rosiak, son of Ralko's controlling shareholders, Yaron and Ziva Rosiak. The proposed acquisition is presented by Ralko's board as strategically aligned with its business plan, offering synergistic opportunities and access to the growing renewable energy sector. The board also highlighted that the purchase price is contingent on future profitability, minimizing upfront investment, and that the acquired company possesses an experienced management team.
However, financial data presented by Ralko indicates that Ralko Energy has been operating at a loss since at least 2023, experiencing a decline in its core business of selling components for solar systems. This raises questions about the stated justifications for the acquisition, especially given the differing business sectors. Furthermore, the close ties between Ralko Energy and the Rosiak family, including Ofir Rosiak's former ownership and CEO role, add complexity to the deal. Ofir and his wife are expected to continue in management roles within Ralko Energy under the new ownership, with Ofir potentially benefiting indirectly from the acquisition's terms.
Ralko Energy is a subsidiary of Yevuli Shemesh Renewable Energy. In 2022, Poalim Equity invested NIS 100 million in Yevuli Shemesh. However, Yevuli Shemesh faced financial difficulties, leading to its sale to PowerGen, the energy arm of Generation Fund, in May 2026. The terms of that sale involved PowerGen covering Yevuli Shemesh's debts and loans, with a potential additional payment to previous owners, including Ofir Rosiak, contingent on future performance. The current proposed acquisition by Ralko, occurring shortly after PowerGen's final acquisition of Yevuli Shemesh, suggests PowerGen saw limited value in the loss-making Ralko Energy itself, focusing instead on Yevuli Shemesh's development projects. PowerGen agreed to cover Ralko Energy's NIS 31.6 million in liabilities as of June and will receive a maximum of NIS 9 million from Ralko, also contingent on Ralko Energy's future performance. Ralko itself reported a 5% increase in sales and a 60% jump in net profit for the first half of 2026, with a market capitalization of NIS 160 million.