A sentence said by the CEO of Delta Israel Brands, Anat Bogner, in an interview with Globes, published last week, can sum up her opinion on the purchase offer that came from the Golf group, which was reported to the stock exchange last week. “I know the company, I live it every day,” she said, referring to Golf , where she worked together with her mother, Ilana Kaufman, former CEO of the group, before moving on to head Delta Israel.
● The controlling owner of Delta: “We appreciate that golf may be a growth engine for us”
● Just before the purchase offer, Delta’s CEO talks about working for Golf’s CEO’s mother interview
Another sentence that could hint at Delta’s plans can be found in the same interview, when Bogner was asked if she had thoughts about additional growth engines. “Since the IPO, we have NIS 300 million lying in the bank, at least, because I also generate a positive flow every year,” she replied.
Snapshot: How much is the offer worth?
Since Golf was Bogner’s professional home, quite a few events have taken place in the fashion industry in general, and in her professional life in particular. In 2018 she was appointed CEO of Delta Israel, in 2021 the company was issued at a value of NIS 1.3 billion, after which a sportswear chain was opened under the Panta Rei brand, and the company was chosen as a Victoria’s Secret franchisee in Israel.
Delta, which manufactures and markets clothing brands and is owned by Isaac Dabach, as mentioned last week submitted an offer to purchase Golf for a cash payment of 425 million shekels (and another 25 million shekels subject to future results). According to the report to the stock exchange, in the event that the deal is not completed, Clal Industries and Stymatsky (of which Eyal Greenberg is one of the owners, and at the same time serves as CEO of Golf) will control the company together.
We will recall that during 2020, the veteran book chain Stimatsky recognized an opportunity, and purchased approximately 12% of the shares of Golf Group for approximately NIS 8 million. It later increased its holding, which currently stands at 15.5%. According to the terms of the current deal, Stimatsky’s shares are valued at NIS 66 to 70 million, so that Stimatsky may reap an impressive profit from her investment – in the amount of tens of millions of shekels.
In addition, if the sale deal to Delta goes through, Greenberg will receive the full options according to the share price in the deal. His profit from their realization may amount to NIS 2-2.7 million.
Delta has a month of exclusivity before the second option can materialize. What will happen to Golf, Delta and the entire fashion industry in both options?
Option 1: Delta buys Golf
According to sources in the industry, behind the move is the decision of Len Blavatnik, the owners of golf, to part with the group. “At the moment there are two alternatives: the first is that Delta’s proposal to buy Golf and delete it from the stock market will come to fruition, and the second is that Golf will take over Blatvnik’s share,” says a senior official in the industry.
One of the questions such a possibility raises is whether the commissioner of the competition, Michal Cohen, will approve the move. After all, these are two big and powerful players, who together will own 525 fashion and home stores – more than the 520 Fox fashion and home stores (in the Fox, Fox Home, Mango, American Eagle, Nike, Foot Locker, TCP, Saks and Yanga chains). It can be assumed that both parties took this into account – if they thought there was no chance of approval, they would not have started.
“If the move is approved, it means a force multiplier for Delta, which will lead it from a significant wholesale player and a relatively small retail player – to a significant retail player that will be established among the five main players in the industry,” adds the executive.
“It is very possible that some of Delta’s considerations are related to the fact that they are bringing Victoria’s Secret to Israel, and the desire to use the real estate areas of Golf for the benefit of the cause. It’s a move that can take them ten years ahead.”
As mentioned, Bogner knows golf very well, through her experience and experience. “They know the DNA, the strength, the potential and the abilities of the group, which are not reflected in its current market value. This is a company that sells for a billion shekels, and has seven brands,” says another source in the industry.
“You also have to remember that the market is constantly looking for ways to grow. There are those who grow by bringing in brands from abroad, and there are those who, in addition to organic growth, conduct mergers or bring in additional activities. This is not unusual.”
Let’s recall that already in 2015, Delta expressed an interest in golf, but then the move was not successful. “It is not certain that golf is the one that interests them,” explains the senior. “It is possible that they will close its activity, or reduce it and merge it with their brands. In any case, Delta’s offer brings Greenberg and Stimatsky NIS 100 million in profit for two years of work.”
Option 2: Stimatsky takes over golf
In 2014, Greenberg’s mother, the late Yifit Greenberg, along with a group of investors, purchased the Steamtsky chain from the Markstone Foundation, after the chain ran into debts of NIS 100 million. The purchase was made by Greenberg together with Eyal, who was appointed CEO.
The Stimatsky network, which began its journey in the field of books, has since sent branches into other fields. Thus, in 2018 it purchased the website Getbox, which serves as a platform for digital books for readers in Hebrew. In 2020, as mentioned, it purchased about 12% of the shares of Golf Group, and then increased the holding.
Stimatsky’s online site has become a market place, which in addition to books also offers games, toys, electrical appliances, kitchen utensils and even camping equipment. In 2021, the group acquired 60% of the operations of the Popsey gift shop chain, and in 2022 announced the establishment of a consumer club with a golf group and the Sonol company.
Greenberg is considered an entrepreneurial and creative CEO, with experience and abilities in motivating employees and managing systems. Over the years, he has become a retailer with several branches, and in the industry it is said that alongside his basic DNA, as someone who grew up with a mother who pioneered marketing and media consciousness, he has become one of the people of retail the most prominent in the market.
According to estimates, Greenberg does not necessarily want the first option to come to fruition. “He has faith in the potential of golf, even after the complex phase of Adika events. He lives the retail world and would like to lead the holdings in golf,” says the source in the industry.
“For him, the second option is a very good alternative. He is a CEO involved in the active management of the company, like Wiesel at Fox, Rutter at Castro, Dabach at Delta and Rami Levy in his network. These are exactly the places where a company grows thanks to close care on a personal and daily level.”