Dor Alon acquires 50% of BBB for about NIS 75 million – the capital market

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Dor Alon
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Base:7,751

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Announces that it is acquiring 50% of the restaurant and hamburger management company BBB for about NIS 75 million. BBB has a customer club of about 750,000 customers, the company is profitable and has an annual sales turnover (including franchisees) of over half a billion shekels.

According to the terms of the deal signed by Dor Alon, owned by Motti Ben Moshe, as reported in the investor presentation, if BBB does not meet the profitability target of doubling its activity within 3 years, 66% of the consideration for the deal will be reduced. On the other hand, a return of up to an additional 5% will be received if the company achieves the goal and passes it.

According to the report, the company is in advanced negotiations for the introduction of additional food chains and the establishment of new formats, including: Asian, Italian, sushi, cafes and more. The group currently operates about 100 restaurants under franchise, with 32 restaurants operating under the company established in 2004. , MOSES acquired in 2017 has 8 restaurants, burgers acquired in 2014 has 50 branches, MOSES SHOP and MEAT DELI were established during the corona to address the challenging period.

According to the company: “The new partnership is intended to strengthen all the group’s brands that plan to continue opening new restaurants throughout the coming year.” BBB CEO Ahuva Turgeman, will continue to manage the activity.

CEO of Dor Alon, Amit Zeev: “In recent years, Dor Alon has been implementing a strategy of expanding its areas of activity and diversifying its sources of income and profit. In parallel with the further development of our energy, retail and real estate business, the Dor Alon Group continues to cultivate growth engines and today expands its catering arm.

BBB CEO, Ahuva Turgeman: “The value of the transaction is a sign of appreciation for the group’s franchisees and employees. The merger will allow us to create vertical integration by establishing a production system for the range of products currently purchased from external suppliers while increasing cooperation with existing suppliers.”

In an interview with BizPortal about a month ago, Dor Alon CEO Amit Zeev said that “despite the drop in revenue sources, the company is also profitable in Corona, although this year has been the toughest in the field worldwide.” “More than 50% of EBITDA does not come from fuel,” he said.