The acquisition deal that is changing the Israeli retail market has been approved: The Competition Commissioner approved the deal today (Monday) - and Ronen Gannon and the Gannon Group officially become the controlling owners of Multi Retail Group, the public company that owns the ACE, Autodepo, Bethili and Urban brands and has significant online activity.
The deal, which was signed last August and was subject to the approval of the Competition Commissioner, was executed for a total of NIS 173 million and at a company value of approximately NIS 238 million.
As part of the move, the Ganon Group purchased the shares of Keren Kedma as well as the shares of CEO Itzik Ohana, and now holds 72.31% of Multi Retail shares, while the remaining shares are held by the public.
Upon receipt of approval and completion of the transaction, the process moves from the acquisition phase to the improvement and growth phase. Ganon Group intends to work to strengthen the existing operations of Multi Retail and realize the potential of the brands and its broad retail platform.
Among other things, the group is expected to focus on 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 scope of activity and national deployment.
For Ganon, owner of the 'Zol Stock' chain, this is a move that significantly expands his activity in the retail world and puts the 'Ganon Group' in control of a public company with large, well-known brands, a broad customer base, and significant infrastructure in the areas of trade, digital, and logistics.
The experience gained in recent years in developing 'Zul Stock' in the areas of trade, purchasing, import, logistics and inventory management is now expected to be at the center of Multi Retail's improvement process.
One of the significant strategic moves that will now be examined is the possibility of a future connection between 'Multi Retail' and 'Cheap Stock' activities.
As such a move matures, it could create a large-scale retail group operating in the areas of stock, do-it-yourself, home, automotive, furniture and online, with combined revenue of approximately 1.7 billion shekels and approximately 155 stores across the country.
It should be emphasized that the possibility of combining the activities is under consideration and a decision on the matter has not yet been made.
Also involved in the move was David Saban, the owner's representative and the person responsible at the Ganon Group for improving retail operations, who was one of the factors that created the connection that led to the deal and accompanied its advancement.
Upon completion, Saban is expected to integrate into the 'Multi Retail' activity and take part in the group's growth and improvement.
Ronen Ganon, owner of the Ganon Group: "At a good and successful time. Receiving the approval of the commissioner and completing the deal marks the beginning of a new chapter for us. We have received a group with strong brands, excellent employees, a national presence and significant potential, and now the work begins.
""We come with extensive experience in retail, trade, import and logistics, and our goal is to strengthen existing operations, grow the brands, streamline the group and bring the Israeli consumer a better and more competitive value proposition. We strongly believe in Multi Retail and its potential and look forward to the long term.".
