Israeli Entrepreneur Ronen Ganon Acquires Major Retail Chains Including Ace and Autodepo

Israeli businessman Ronen Ganon, co-owner of the discount chain Zol Stock, has signed an agreement to acquire a controlling stake in Multi Retail Group for 173 million shekels. This purchase, representing about 72.3% of the company’s shares, was made from the investment fund Kedma and includes shares held by CEO Itzik Ohana. The deal values Multi Retail at 238 million shekels, a 60% premium over its current stock market valuation of approximately 149 million shekels. Multi Retail owns several well-known Israeli retail brands, including the Ace hardware and maintenance chain, the Autodepo automotive equipment chain, and furniture chains Beitili, Urban, and I.D. Design.

The acquisition is pending approval from the Israeli Antitrust Authority. Ganon, who brings extensive experience from the discount and logistics sectors, believes he can significantly improve Multi Retail’s performance and sees the company as undervalued by the stock market. Kedma, which acquired these brands starting in 2017 and took the company public in 2021 at a valuation of 400 million shekels, faced challenges that led to a decline in the company’s value and a two-year search for a buyer. Recent operational improvements have returned the company to modest profitability, with a net profit of about 12 million shekels over the past year.

Ganon plans to enhance the digital presence of the acquired brands, improve supplier terms, and offer better value to Israeli consumers. There is also consideration of merging Multi Retail with Zol Stock, which would create a major retail network with approximately 155 stores nationwide and combined sales of around 1.7 billion shekels. This potential merger has not yet received final approval.

The transaction marks a significant shift in the Israeli retail landscape, with Ganon aiming to leverage his discount retail expertise to revitalize established chains and possibly consolidate the market.