Supergas Enters Consumer Goods Market After Seven-Month Approval Wait

Supergas Power, part of the Elco Group, is expanding into the international consumer goods retail market. After more than seven months awaiting regulatory approval, the company finalized its acquisition of a controlling stake in Nine Consumer Products, an importer of brands like Weber, Coleman, and Ooni, for approximately NIS 30 million. This move positions the energy provider for broader involvement in the outdoor kitchen, grill, pizza oven, and camping equipment sectors, establishing it as a significant player in gas-based consumer products.

Supergas acquired 50% of Nine's shares, with options to gain full ownership later. The deal includes a NIS 17.5 million base payment, up to NIS 10 million in performance-based incentives, and additional payments tied to EBITDA growth over four years. For Supergas, primarily known for gas supply to homes and businesses, this marks a significant entry into a distinctly retail-oriented sector. While gas suppliers have historically offered complementary products, Nine provides access to established international brands and a distribution network reaching hundreds of retail locations, including major chains like Home Center, Ace, KSP, and Ricochet.

The acquisition occurs amid a growing market for outdoor kitchens in Israel, particularly grills, which is estimated to be worth around NIS 530 million annually with approximately 100,000 units sold each year. The home pizza oven market is also experiencing growth. Nine, founded by Shai Habib, imports and markets home, garden, and camping products. Following the Supergas integration, the company plans to expand into gas water heaters, a sector where Supergas already operates, aiming to create new integrated solutions for gas supply and appliance sales.

"Our aspiration is not limited to expanding the product basket, but to create a new consumer experience in the gas-based products market in Israel," said Shai Habib, Chairman and Founder of Nine. "We intend to develop new categories and value propositions that combine gas supply with gas-consuming products."

The deal, initially announced in late March, received approval from the Competition Authority, concluding a lengthy regulatory process. This extended timeline is not uncommon for complex mergers, which can sometimes take up to a year for review, although the average processing time for simpler mergers is significantly shorter. Supergas Power CEO Daniel Sapir stated that the acquisition is a key step in focusing the company's activities on its core areas: LPG and electricity supply, aligning with a broader strategy that includes divesting its natural gas and cogeneration operations and acquiring electricity supply activities from Pazgas.