Ronen Ganon Acquires Control of Multi Retail Group for 173 Million Shekels

Israeli businessman Ronen Ganon, head of Ganon Group and 50% owner of the discount chain Zol Stock, has signed an agreement to acquire a controlling stake in the publicly traded Multi Retail Group. Ganon will pay approximately 173.5 million shekels for 72.3% of the company, which owns well-known Israeli brands including the ACE home and maintenance chain, the Autodepo automotive equipment chain, and furniture chains Beitili, Urban, and I.D. Design. The deal is subject to approval by the Israeli Antitrust Authority.

The transaction values Multi Retail at 238 million shekels, representing a 60% premium over its market capitalization of about 149 million shekels. This premium reflects the control rights and Ganon's confidence in improving the company based on his experience in discount retail and logistics. The investment fund Kedma and CEO Itzik Ozna are selling their shares after a challenging period for Multi Retail, which had been struggling since its 2021 IPO at a 400 million shekel valuation. Recent restructuring efforts, including closing unprofitable stores and shifting to franchising, returned the company to a modest profit of around 12 million shekels in the past year.

Ganon plans to enhance the digital operations of the acquired brands, improve supplier terms, and offer more accessible value to consumers. There is also consideration of fully merging Multi Retail with Zol Stock, which would create a retail group with about 155 stores nationwide and combined sales of approximately 1.7 billion shekels. Partner Adir Venuno highlighted the synergy potential through joint import operations and increased purchasing power from suppliers in China and worldwide.

Industry insiders caution that significant effort is needed to realize the company’s potential despite its valuable real estate and locations. Ganon, 51, originally from a large religious family in Kiryat Gat and now based in Safed, has built a diverse holdings group including half of Zol Stock, the supermarket chain Shai Market, a partnership in Neto Savings, and ventures in meat and real estate. Known for his visionary and collaborative approach, Ganon is described as a charismatic leader with strong business acumen and religious faith.