The Ace product chain (or in its official name “Multi Retail Group “) Is expanding its operations and plans to invest about NIS 100 million in the acquisition of the Beitili, Urban and ID Design chains – which also operate in the field of home product marketing – from Carmel Holdings, which is controlled by the Eitani family.
According to the update of Multi Retail Group, NIS 90 million of the transaction amount will be paid on the date of its completion, subject to certain conditions, and the balance (NIS 10 million) will be paid a year later.
Beitili, Urban and IDDesign are engaged in the production, import and marketing of furniture, housewares and lighting, and according to the update of Multi Retail Group, they together operate 32 branches, six of them through franchisees and three websites. The deal also includes the purchase of a furniture factory where some of the furniture offered by the three chains is manufactured.
As part of the transaction, the Eitani family undertook “non-competition and non-solicitation of employees, suppliers and customers” for a period of two months from the date of completion of the transaction, as well as “rules were established for the absorption of employees acquired” by Multi Retail Group.
Multi-Retail Group explained that it intends to “continue to operate the chains under their brands, while leveraging the synergy between the acquired activity and the company’s various activities, including in the marketing level and in the logistical and operational aspects.” Financial data of the acquired activity is planned by Multi Retail Group to publish at the date of completion of the transaction.
Multi Retail Group went public under the name Ice Capital at the beginning of last year, and since then its share has strengthened slightly, so that it reflects a current market value of about NIS 480 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.
In the first nine months of 2021, its revenues grew by 15% and reached NIS 542 million, thanks to “continued expansion of sales on e-commerce sites and improvement in synergy between e-commerce sites and stores, increase in logistics warehouse space and improvement in supply chain.” Its net profit for this period grew by 17% and reached NIS 26 million.