Ronen Ganon Acquires Control of Multi Retail Group, Plans Discount-Style Revamp

Ronen Ganon, head of Ganon Group and 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. The deal, which includes about 72.3% of the company’s shares, was purchased from the investment fund Kedma and values the company at 238 million shekels, a 60% premium over its current stock market valuation of approximately 149 million shekels. Multi Retail Group owns several well-known Israeli retail brands including ACE (a hardware and maintenance chain), Autodepo (automotive equipment), and furniture chains Beitili, Urban, and ID Design.

The acquisition is pending approval from the Israeli Antitrust Authority. Ganon intends to leverage his experience in discount retail and logistics to improve and expand these established brands, aiming to enhance their digital presence, improve trade terms, and offer better value to Israeli consumers. There is also consideration of merging Multi Retail Group with Zol Stock, which would create a major retail network with around 155 branches nationwide and combined sales of about 1.7 billion shekels.

Kedma acquired ACE and Autodepo from Electra in 2017, later adding Beitili and Urban, and took the company public in 2021 with a valuation of 400 million shekels. However, the company faced challenges that led to a significant drop in value and a two-year search for a buyer. Recent operational improvements, including closing unprofitable stores and streamlining logistics, helped return the company to modest profitability of around 12 million shekels over the past year. This sale allows Kedma to exit the investment with a profit.

Ganon, a proactive Haredi businessman with extensive real estate and retail experience, plans to fundamentally upgrade the acquired brands and potentially create a dominant player in the Israeli retail market.