Businessman Gad Ze'ev Negotiates $550 Million Acquisition of Gadot Group

Israeli businessman Gad Ze'ev is currently in negotiations to acquire the Gadot Group at a valuation of $550 million, backed by a group of investors. Ze'ev has signed a non-binding memorandum of understanding, aware that Gadot's current owners, including the Tene Investment Fund led by Ariel Halperin (holding 60%) and the LBH Group headed by Wally Bays, are also in talks with other international parties, some offering higher valuations. The owners are represented by the American investment bank Jefferies as they proceed with the sale process.

Tene Investment Fund, which specializes in industrial and kibbutz-related companies, is particularly motivated to sell as it invested in Gadot over a decade ago, a notably long period for a private equity fund. Tene originally acquired Gadot, then known as Gadot Tankers, from a receivership for $73.5 million. At the time, FIMI Fund, led by Ishay Davidi, also competed and improved its offer by $1 million but ultimately did not secure the purchase.

In 2022, under new ownership, Gadot became a partner in the Haifa Port privatization alongside the Indian Adani Group, jointly agreeing to pay approximately 4.2 billion shekels, significantly outbidding the second-place offer. The ongoing war in the region has impacted the business environment, deterring foreign investors from committing to real assets in Israel, except for high-tech investments which can be managed remotely.

Ze'ev, 86, a native of Kibbutz Masada, has been linked to major deals in energy, retail, and real estate sectors and briefly owned the Beitar Jerusalem football club. In 2009, he reflected on his career with pride despite setbacks. He gained public attention in 1999 after acquiring shares in Bezeq from Cable & Wireless but faced financial difficulties and legal challenges related to that deal. In 2015, he was fully acquitted of criminal charges concerning the transaction.

Ze'ev has maintained a relatively low profile in recent years, with his last notable real estate transaction in April 2023 when Donitz Elad Real Estate purchased his remaining stake in a residential project in Haifa for 80 million shekels.