Israeli Retail Giant Multi Retail Acquisition Moves Forward
Translated & summarized from Ice by baba
Ronen Ganon's Zol Stock network is acquiring 72.3% of Multi Retail for NIS 168 million, with Global ACE approving the franchise transfer. The deal restructures store commitments and includes a $40,000 transfer fee. The combined entity could operate 155 stores with NIS 1.7 billion in annual revenue, covering diverse retail sectors.
The story in 5 lines · by baba
- Ronen Ganon's Zol Stock network is acquiring 72.3% of Multi Retail for NIS 168 million.
- Global ACE approved the franchise transfer, fulfilling conditions for control of the Israeli network.
- The deal restructures minimum store requirements for Multi Retail to 21 by end of 2027.
- The combined entity of Zol Stock and Multi Retail could operate 155 stores with NIS 1.7 billion in annual revenue.
- The sellers are Kadma investment fund and Multi Retail CEO Itzik Ozana.
The acquisition of Multi Retail by Ronen Ganon and his partners is progressing, with Ganon's Zol Stock network set to purchase 72.3% of the company's shares for NIS 168 million. Global ACE has approved the transfer of the franchise license for operating the network in Israel, fulfilling the conditions for the control transfer. According to Calcalist, the approval also reveals revised commitments for Multi Retail towards Global ACE. The original franchise agreement mandated at least 25 stores in Israel, but the company currently operates only 21. The new agreement lowers the minimum store requirement to 21 by the end of 2027, and to 22 from January 2028 onwards. Additionally, Multi Retail may face a penalty, deemed non-material by the company, if it fails to meet its 2026 purchase targets with Global ACE. Multi Retail will pay Global ACE a $40,000 transfer fee as part of the franchise transfer. The outgoing and incoming controlling shareholders have committed to reimbursing the company for any claims arising from their breaches of obligations during the franchise transfer process.
The deal, initially signed in August and approved by the Competition Authority, now sees control moving to the Ganon group. The sellers are the Kadma investment fund, holding 69.93% of Multi Retail, and the company's CEO Itzik Ozana, who holds 2.38%. Multi Retail operates the ACE, Auto Depot, Beithili, and Urban retail chains, alongside online operations. This acquisition follows Kadma's purchase of ACE a decade ago and its IPO five years ago at a NIS 400 million valuation. Despite expanding into furniture and home goods, Multi Retail faced business challenges, exacerbated by the recent war.
The acquisition could be part of a broader strategy for the Ganon group. Following Competition Authority approval, the potential integration of Multi Retail's operations with Zol Stock is being explored. A combined entity could comprise approximately 155 stores nationwide, generating annual revenue of around NIS 1.7 billion, spanning categories like stock goods, DIY, home, automotive, furniture, and e-commerce. Ganon previously stated intentions to strengthen existing operations, grow brands, and streamline the company, focusing on direct imports, improved trade and procurement terms, enhanced online and data activities, and inventory management.
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