Yoav Golan (Photo by Ram Zranger)
Hamat Group acquires control (70%) of the ‘Ziv Kitchens’ activity at a value of NIS 50 million with an option to purchase the full activity in the coming years. Ziv Kitchens operates through 7 showrooms, and achieved revenues of approximately 40 million in the first half of 2021.
With the completion of the acquisition, the group is deepening its retail activity in the finished construction and home design products, which currently includes Hazibank and the Aloni chain.
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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 well with the transactions we have made in recent years to acquire Hazibank and the Aloni marble chain, which are already bearing fruit. “The field of residential construction and renovations is expected to continue to enjoy a supportive business environment, and the acquisition of Ziv Kitchens expands the basket of solutions the company offers its customers, as well as the architects the company works with, and strengthens its position in this growing field.”
Yair Levy, CFO of the Hamat Group: “Today we are adding another piece to the puzzle in our strategy. Ziv Kitchens’ activity is synergistic with Hamat’s core activities and is in line with the company’s strategy, to constitute a one stop shop in the field of finishing and home design products in the construction and renovation market, which enjoys high demand. The process of purchasing the kitchen is an integral part of the process of purchasing the ceramics and finishing products of the house and in most cases is accompanied by the same designer on behalf of the owner of the apartment or house and this is an immediate added value for our customers.
“Be in line with the clientele and architects we work with. We believe that this acquisition, like previous acquisitions we have made in recent years, is expected to contribute in the coming years to an increase in the volume of activity and group results for the benefit of shareholders.”
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 kitchen accessories (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 ended the results of the third quarter and the first nine months of 2021, which shows 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 an increase of 26.4% to 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.
Hamat (formerly: Merhav) was listed on the stock exchange in 1993 and operates mainly under the brands “Hamat”, “Harsa”, “Lipsky”, “Hazibank”, “Houzer” – in the field of production, import, marketing and sale of construction and home finishing products. For bathrooms, toilets and kitchens. The group’s main products are faucets, sanitary ware, plumbing products and showers.
The group’s main activity is in Israel. Outside of Israel, the group operates mainly through its subsidiary “Houzer”. Hamat Group is characterized by many years of experience in its field of activity. In addition, as of July 2014, the group operates in the field of import and distribution of plumbing products, irrigation accessories, faucets, sanitary ware and bathroom accessories for retail customers. In January 2018, the group acquired Hazibank Design and in February 2020, it acquired the Shish Aloni chain, thus becoming dominant in the market for ceramic retail and construction finished products.
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