A significant move in the Israeli retail market: Haredi entrepreneur and businessman Ronen Ganon, who heads the Ganon Group and owns the Zol Stock chain, signed an agreement to acquire control of all the leading brands in the public company Multi Retail Group from the Kedma Foundation.
The deal was signed for NIS 173 million, based on a company value of approximately NIS 238 million.
Completion of the transaction is subject to approval by the Competition Commissioner. Ganon actually purchased 70% of the company's shares as well as 2.3% that were owned by CEO Itzik Ohana. In this way, in fact, the 'Ganon Group' holds 72.3% and the remaining percentage - 27.3% is in public ownership.
''Multi Retail' owns a number of well-known brands in the home, automotive and furniture sectors, including the retail giant ACE, Autodepo, Bethili and Urban, alongside significant online activity and a wide national presence.
It is worth noting that over the past 12 months, Multi Retail has recorded a profit of NIS 12 million and is on a very positive trend. For the Ganon Group, this is an entry into control of a public retail platform with established brands, a broad customer base, and trade, digital, and logistics infrastructure.
For Ganon, who currently holds 50% in Zul Stock - along with Adir and Nuno who hold 30%, and Sahar Kochavi who holds 20% - the deal is a direct continuation of the activity he has built in recent years in the retail world. As part of his activity at Zul Stock, Ganon was involved in the growth of the chain and in developing capabilities in the areas of trade, purchasing, import, logistics and inventory management - experience that he now seeks to bring to Multi Retail.
After the transaction is completed, Ganon Group is expected to focus on improving Multi Retail's existing operations and realizing the potential inherent in the brands and existing platform. Among other things, increasing direct imports, improving trade and purchasing conditions, strengthening online and data activities, improving inventory management, and maximizing the benefits resulting from the group's size and distribution will be examined.
The next step will also examine the possibility of a merger between Multi Retail and the Zol Stock chain. This is an option that has not yet been decided upon, but as it matures, it could create a large-scale retail group operating in the stock, DIY, home, automotive, furniture and online sectors, with combined revenue of approximately 1.7 billion shekels and approximately 155 stores across the country.
David Saban, the owner's representative and the person responsible for improving the retail activity at the Ganon Group, was also a partner in the process. He was one of the factors that created the connection that led to the deal and accompanied its progress. Saban is expected to integrate into the Multi Retail activity after the deal is completed and take part in the growth and improvement of the group.
Haredi entrepreneur Ronen Ganon, owner of the Ganon Group: "For us, this deal is a starting point. Multi Retail brings with it strong and well-known brands, a significant distribution and a platform with a lot of potential. Together with my partners Adir and Nono and Sahar Kochavi, we bring with us years of experience in retail, trade, import and logistics. The goal is to build a more efficient, growing and competitive operation and bring the Israeli consumer a better value proposition. After the deal is completed, we will also examine the possibilities for connecting the activities and creating additional value.""
