Ziv Kitchens operates through 7 showrooms, and recorded revenues of approximately 40 million in the first half of 2021.
Thereby expanding and deepening Hamat Group Its retail activity in finished construction and home design products, which currently includes Hazibank and the Aloni chain.
Yoav Golan, Chairman of the Hamat Group: “The acquisition of Ziv Kitchens is an important strategic step as part of the expansion of Hamat’s retail operations and integrates excellently with the transactions we have made in recent years for the acquisition of Hazibank and the Shish Aloni chain, which are already bearing fruit. The company offers its customers, as well as the architects with whom the company works, and strengthens its position in this field of vegetation. ”
Yair Levy, CFO of the Hamat Group: “Today we are adding another piece to the puzzle in our strategy. Ziv Kitchens’ kitchen activity is synergistic with Hamat’s core activities and matches the company’s strategy, to be a one stop shop in the field of finishing and home design products in the construction and renovation market, which enjoys high demand. The ceramics and finishing products of the house and in most cases are accompanied by the same designer on behalf of the owner of the apartment or house and it is an immediate added value for our customers. Following an increase in the volume of activity and the Group’s results for the benefit of shareholders. “
Hamat Group continues to expand its retail operations. Hamat reports that it entered into an agreement to acquire control (70%) of Ziv Kitchens’ operations for NIS 35 million, which reflects a value of NIS 50 million.
Under the agreement, Hamat will be granted a Call option to purchase the balance of Ziv Kitchens’ activity, and the seller will be granted a Put option to sell the balance of its holding in Hamat’s operations. The seller will be entitled to exercise the option from the date of completion of the transaction. Hamat will be entitled to exercise the option as of January 1, 2024.
Ziv Kitchens Is a private company wholly owned and controlled by Avi Ziv, which has been operating since 1991 in the production, marketing and sale of designed kitchens, including ancillary products for kitchens (such as kitchen appliances, faucets, sinks, etc.). Ziv Kitchens operates through 7 showrooms nationwide and employs about 200 people. The production activity of Ziv Kitchens is carried out from a factory located in Sderot.
On behalf of Hamat, the transaction was accompanied by attorney Yafit Adar Schnitzer together with Adv. Uri Gottlieb from the firm of Schnitzer Gottlieb Samet. On behalf of Ziv Kitchens, Adv. Assaf Lapid from the firm of AYR accompanied the transaction.
From the data published by Hamat, Ziv Kitchens recorded revenues of NIS 39.6 million in the first half of 2021, revenues of NIS 71.9 million in 2020 and revenues of NIS 65.7 million in 2019.
Hamat recently published the results for the third quarter and the first nine months of 2021, which show that Hamat recorded an increase in revenues of NIS 198 million in the third quarter, despite a decrease in working days in September, along with a 26.4% increase in NIS 20.5 million in net profit. In the first nine months of 2021, Hamat recorded an increase of approximately 17.8% in revenues to approximately NIS 595 million, along with an increase of approximately 81.2% in net profit to approximately NIS 59.6 million.
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