Businessman Yoram Ben Shimol to Acquire 35% Stake in Israeli Poultry Producer Of Tov
Israeli poultry and frozen schnitzel manufacturer Of Tov, owned by 47 kibbutzim and moshavim in the Jordan Valley and Beit She'an Valley, is in advanced talks to sell 35% of its shares to businessman Yoram Ben Shimol. The deal, recently approved by the kibbutzim shareholders' meeting, involves Ben Shimol injecting 150 million shekels into the company and assuming his proportional share of the factory's debts, which total approximately 350 million shekels. The transaction is subject to due diligence and approval by the Israeli Competition Authority.
Of Tov is the second-largest player in Israel's frozen poultry market, holding about a 28% market share behind Tnuva's Mama Of. The company employs around 1,500 workers and operates a full value chain including poultry farms, a slaughterhouse, a ready-made products and sausages factory, and the "Tzemach Sha'an" animal feed plant. Its annual turnover is about 1.2 billion shekels, with 700 million attributed to Of Tov's operations.
This is not Ben Shimol's first attempt to acquire Of Tov. About a year ago, after the Competition Authority blocked a planned merger between Of Tov and Millaof, he offered to buy 100% of the company for 300 million shekels and take on all its debts. The kibbutzim rejected that offer, claiming the company was worth more. However, financial pressures have since shifted the balance, leading the kibbutzim to approve the current partial sale, especially as no alternative partner was found.
The current deal allows the kibbutzim to retain majority control with 65% ownership while reducing their debt burden. If completed, Ben Shimol will become a significant figure in Israel's meat industry. He has previously outlined a growth strategy focused on rebranding products under special kosher certifications, which command higher prices and improve profit margins.
Of Tov operates as part of the Tzemach Sha'an group, formed from the merger of Tzemach Taarovot and Of Tov Beit She'an, and is one of Israel's oldest agricultural cooperatives, established about 50 years ago.
