Shufersal continues its acquisition campaign even without a CEO and chairman

Shufersal is not waiting for the appointment of a CEO and is implementing the policy of retiring CEO Itzik Aberkhan, who is working to return to the company in a few weeks and this time, as chairman. Agreement to acquire the Dan Deal stock network In exchange for an amount that may exceed the NIS 350 million threshold. Calcalist has learned that the company’s management has not met again recently ahead of the signing of the agreement and at least some of its members have learned about the deal from the media publication yesterday morning.

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The deal to acquire the stock chain was signed in the absence of an incumbent CEO and chairman. Shufersal is currently managed by temporary replacements: Nir Metosevich He currently serves as the Deputy CEO until the soon-to-be expected arrival of Ofer Bloch;Ren Gottfried He was recently appointed interim chairman of the company and there is great doubt about the continued tenure of the 0 board members that some of the company’s shareholders are seeking to replace.

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Interim Shufersal Chairman Ran Gottfried and Dan Dealer Dan Astrog Founder

(Photo: Chen Galili)

The aforesaid agreement was signed a few days before the expected date of Ofer Bloch’s entry into the position of CEO of Shufersal, but also this appointment – it is doubtful whether it will last in light of the shareholders’ intention to appoint Aberkhan as chairman and subject To Bloch’s statement revealed in “Calcalist” According to Bloch, he said that he has no problem working with any elected chairman, except for one (Aberkhan). ), That if he comes, he (Bloch), will lay down the keys.

Stock of dividends and subscriptions

Shufersal will pay the founders of Dan Deal NIS 109 million on the date of completion of the transaction, and at the end of 2026 an additional consideration will be determined depending on performance. The future payment will be calculated on the basis of the cash flow multiplier (Ebitda), which may increase the consideration up to more than NIS 350 million. If the cumulative amount exceeds NIS 350 million, Shufersal will be entitled to pay the difference between NIS 350 million and the consideration, in whole or in part, in Shufersal shares. In addition, the sellers will be entitled to a 36% increase in dividend to be distributed between the date of completion of the transaction and the end of 2026. Another benefit received by the Estrog family who founded Dan Deal concerns Shufersal’s commitment to continue to employ the family members.

The Dan Deal Group includes nine companies that operate the chain’s 10 branches covering an area of ​​9,000 square meters and Marlog in a similar area, as well as a company that operates in the wholesale arena, imports products and sells them to the group’s branches and third parties. In addition, the company operates an online website for the sale of stock products.

According to pro forma data for 2021, which were presented to Shufersal, the group’s revenue turnover, including the wholesale arm, amounted to NIS 129 million and the operating profit before depreciation and amortization amounted to NIS 21 million.

Can not expand in food

The acquisition of Dan Deal is part of the implementation of the company’s strategy to expand into other areas of activity, given its enormous power in the food market, which does not allow it to continue to grow in it. In recent months, the company has been examining the acquisition of the Kravitz office equipment chain and the acquisition of importer and retailer Mini Lane, from which it has withdrawn.

This is after in recent years it acquired the The New-Pharm Pharm NetworkRebranded under Be, and the food wholesale company Amiga Which markets food to the institutional market.

The acquisition of Dan Deal will allow Shufersal to penetrate the booming stock market with Apax’s Max chain and soon a jumbo that the Fox Group is preparing to launch. The Yochananoff chain overtook Shufersal in the stock arena and last year acquired control (50.1%) inCheap stock network. The agreement is subject to conditions precedent, including obtaining approval from the competition commissioner, and there is no certainty that the transaction will be completed.

Want Abercrombie

The signing of the agreement to acquire Dan Deal is a very significant decision, for the company to enter a completely new field of activity. Contacts for the deal were reported as early as last January, so it is not clear why Shufersal, which is in an acute and sensitive management crisis and before substantial changes, chose to sign the agreement now.

As revealed in “Calcalist”Last week, a number of shareholders who together hold about 22%, including Phoenix and Menora, applied to the Shufersal board of directors to nominate Aberkhan to be elected as a director of the company, with the intention of later being appointed chairman.