Group Multi Retail , Which owns the ACE and Autodipo chains, announced this morning (Monday) that the acquisition of the Beitili, IDdesign and Urban chains, which also operate in the field of home product marketing, has been completed by Carmel Holdings, which is controlled by the Eitani family for NIS 100 million. The company reported to the stock exchange this morning that the conditions precedent set forth in the agreement announced at the beginning of February this year have been met, and that the purchase transaction has been completed.
The Multi Retail Group paid about NIS 90 million at the time the transaction was completed, with NIS 80 million through a loan taken from a banking corporation, and the balance in the amount of about NIS 10 million from the company’s independent sources. The balance in the amount of NIS 10 million will be paid after one year from the date of completion.
According to the report, the company contracted with Aviv Eitani, who has so far managed the operations of the acquired company. It was agreed that Eitani would continue in his position as CEO of the activity for NIS 85,000 per month as an independent service provider.
From December 1, each party will be able to bring the agreement to an end with 60 days’ notice. Multi Retail Group will receive the right to use the office, in addition to the services that accompany it, for a period of 10 months, in exchange for months of NIS 35,000.
Beitili, IDdesign and Urban are engaged in the production, import and marketing of furniture, housewares and lighting, and together operate 32 branches, a furniture factory and Marlog. The chains’ total revenue for the first half of 2021 was NIS 85.3 million, with an operating profit of NIS 7.9 million. NIS and a net profit of NIS 6 million.
The Multi-Retail Group operates marketing chains for products for upgrading and maintaining the home, yard and vehicle, through the ACE, Autodipo and Ace Electric chains. The company is traded on the stock exchange, and its market value is over NIS 420 million. The company, which is controlled by the Kedma Private Equity Fund, offers products for upgrading and maintaining the home, yard and vehicle through a chain of stores under three brands – ACE, Autodipo and Ace Electric.
Itzik Ozana, CEO of the Multi-Retail Group, said: “We will work to continue identifying attractive investment opportunities with a strategy based on a wide range of professional services in the home field. The deal reflects the company’s vision to be a leading player in Israel in the home world, which also includes the furniture market currently estimated in Israel at NIS 7 billion. “