Footwear and fashion group Brill Manages contacts with Network 13 to establish a joint company in the field of e-commerce, which will coordinate all the group’s online trading activities.
The joint company will be established in a division of 75% to the Brill Group and 25% to Network 13, which it will receive in exchange for a media allocation worth NIS 33.3 million for a period of 5-6 years.
The transaction reflects a value of approximately NIS 135 million for the joint company. Globes has learned that the launch is expected to take place after Pesach.
According to Brill chairman Shahar Turgeman, “We have been in contact with a network for a long time to set up the venture. “This strategic partnership will be reflected when we bring our technological capabilities in combining brands and marketing, and Network 13 through the media will accelerate brand building.”
This is not the first time that Network 13 has shown interest in online commerce sites. In 2018, it signed a deal to hold a 25% stake in the company that operates Terminal X, which Fox set up, in exchange for advertising time. About a year later, however, the network gave up the partnership, and its share was acquired by a private company jointly owned by Idan Ofer and Udi Angel under the name XT.
The move turned out to be a mistake in retrospect, since in July this year Terminal X reported an IPO at a company value of NIS 1.3 billion “before the money”. The main beneficiaries were Ofer and Angel, who realized a share of their holdings for about NIS 140 million.
Brill was founded in 1988 and issued about five years later. It owns the Gali and Solog chain stores, and also imports and markets a number of brands, including Nine West, Caterpillar, Lee Cooper, Fire Papies, Nautica and Timberland. In total, the company markets more than 30 footwear brands, which account for about 60% of its revenue.
The group operates more than 220 stores and five online trading sites, and its annual revenue is more than half a billion shekels.