Private equity firm Kedma Capital has announced the sale of its controlling stake (70%) in Multi Retail (TASE: MRG), which holds the Ace, Auto Depot, and Betili retail chains, at a valuation of NIS 240 million to Ronen Ganon, owner of the discount retail chain Zol Stock.
The price in the deal represents a premium of about 60% on the share price before the report. Following it, Multi Retail’s share price rose by 37.89% on the Tel Aviv Stock Exchange today.
Ganon bought Kedma Capital’s shares in Multi Retail for NIS 1698 million. Multi Retail CEO Itzhak Uzana, who has been twelve years in the post, is expected to sell his shares in the company as well, for NIS 5.5 million, so that altogether Ganon will buy 72% of Multi Retail for NIS 173.5 million.
For Kedma Capital, headed by Uri Einan, Gilad Shavit, and Gilead Halevy, this is an unlocking of value, but the way to it was strewn with difficulties. Kedma is estimated to be NIS 200 million in profit on the deal (including dividends), three times what it paid for the business a decade ago.
In late 2016, Kedma Capital bought the Ace chain (now Multi Retail) from Electra Consumer Products, which made a NIS 95 million gain after buying the chain four years earlier when Ace was under a stay of proceedings.
In 2021, Kedma led an IPO on the Tel Aviv Stock Exchange for Ace at a valuation of NIS 400 million, in which it sold shares to the tune of NIS 100 million, thereby paying back its investment. After three years, the share price was down nearly 90%, bringing Ace to a market cap at the end of 2023 of just NIS 54 million, following the acquisitions of the Betili, Urban, and ID Design chains and an ensuing large write down.
Because of the company’s failure to meet financial criteria, Kedma Capital had to inject NIS 20 million into it through a rights issue. Multi Retail carried out a streamlining program, cutting jobs, mainly in management.
The share price recovered somewhat, but in the past year it has fallen almost 50% (and altogether 70% since the flotation), bringing it to a market cap before the report of the sale of control of some NIS 150 million.
Completion of the deal is subject to certain conditions, among then approval by the Competition Authority and by Ace Hardware International.
Published by Globes, Israel business news - en.globes.co.il - on August 12, 2026.
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