WeShoes Attempts to Acquire Shurush Again After Deal Collapse
Translated & summarized from Calcalist by baba
WeShoes, part of Tamuz Commerce Group, is attempting to acquire Shurush, a sandal manufacturer, for tens of millions of shekels. The deal was previously blocked by the Competition Authority three and a half years ago due to market power concerns. Shurush recently sold 50% of its defense operations for 195 million shekels. The Competition Authority, led by Michal Cohen, is reviewing the new acquisition attempt.
The story in 5 lines · by baba
- WeShoes is again attempting to acquire Shurush for tens of millions of shekels.
- A previous acquisition attempt by WeShoes was blocked by the Competition Authority.
- Shurush recently sold 50% of its defense operations for 195 million shekels.
- Competition Authority concerns centered on market power and potential price increases.
- WeShoes operates 120 shoe stores across Israel and has a strong online presence.
Tamuz Commerce Group, the importer of Blundstone and Crocs footwear and owner of WeShoes, is once again trying to acquire Shurush, the manufacturer of Shurush sandals. The deal, valued at tens of millions of shekels, has been signed and submitted for approval to the Competition Authority. Both parties hope for a more favorable review this time, with clauses likely addressing previous concerns.
Three and a half years ago, a similar deal was blocked by the Competition Authority due to fears that the merger would create excessive market power, potentially harming competitors and leading to price increases. The authority's concerns at the time included the potential for a competitor to be removed from the hiking sandal market and a reduction in inter-brand competition at the retail level, which could allow for higher consumer prices.
Shurush, founded in 1989, initially produced hiking sandals and later expanded into developing flexible water systems. This led to the development of military equipment, including protective and carrying systems for ground forces, which became its primary focus. In August 2024, Shurush sold 50% of its defense operations to the Rakevet investment fund for 195 million shekels, reflecting a valuation of 385 million shekels for the defense segment.
WeShoes, operated by Amos Horowitz, runs 120 shoe stores across Israel and has a significant online presence. Shurush, which manufactures sandals in Tirat Carmel and sells through distributors, has annual sales estimated between 20-30 million shekels with a 10% net profit margin. The company's owners include founder Yuki Gil and his partner Daniel Benozilio, along with Hong Kong businessman Brian Deluge and CFO Dalia Cohen.