Israeli Businessman Ofer Gilboa Profits 160 Million Shekels After Buying Infrastructure Firm Gaon Holdings
About a year ago, Israeli businessman Ofer Gilboa surprised the market by acquiring control of Gaon Holdings, a company specializing in infrastructure and water systems. At the time of purchase, Gilboa, owner of the cargo airline Challenge Airlines, admitted he had not conducted due diligence and was unsure exactly what he was buying. He described the acquisition as a strategic entry into a sector with ongoing demand and relatively low risk.
Since acquiring a 65% stake in Gaon Holdings from Viola Group and other investors for 57 million shekels in May last year, the company’s stock has surged nearly 225%. This rise has translated into a paper profit of approximately 160 million shekels for Gilboa. The subsidiary Gaon Group, which accounts for 68.5% of Gaon Holdings’ operations, has undergone strategic restructuring under the new ownership to streamline its value chain activities.
Gaon Group operates through three divisions: industrial manufacturing of infrastructure products, project planning and execution, and trading of systems like fire suppression and electrical installations. The company reported 2025 revenues of about 654 million shekels, a 7.5% increase from the previous year, and net profits jumped nearly 200% to 33.5 million shekels, driven mainly by improved operating margins in its industrial segment.
Gilboa, who has a background in industry and logistics, sees the acquisition as a return to his roots. He has experience leading companies, including a decade managing a textile conglomerate and transforming Challenge Airlines into a billion-dollar enterprise with a fleet of jumbo jets generating hundreds of millions in annual revenue. Gilboa’s partnership with Gaon’s CEO Guy Regev, who also invested in the company, has been key to the turnaround and growth strategy.
The deal highlights Gilboa’s ability to identify undervalued assets and create value through operational improvements and strategic focus in sectors critical to Israel’s infrastructure needs.
