Yohannoff acquires “Cheap Stock” at 45 m – the capital market

The food retailer


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Expands into the stock field: The company reports that it will acquire control (50.1%) of the “Cheap Stock” chain for NIS 45 million. The deal reflects a cheap stock value of about NIS 90 million. The company’s share is up about 4% in trading following the announcement.

Yohannoff will purchase the shares from the four existing shareholders, so that after the acquisition its directors
Adir and Nono and Sahar Kochavi will hold approximately 30% and 19.9%, respectively, and will continue to manage the network and will be entitled to a grant subject to performance.

Cheap Stock has about 50 branches, some of which are franchised and until the end of May it intends to expand to over 60. The chain sells stationery, housewares, disposable utensils, plastic products, storage tools, cleaning products, toys, gifts, ornaments, storage products, kitchen utensils And more.

The group’s revenues in 2020, including those of the franchise branches, amounted to approximately NIS 230 million. Excluding these branches, revenues amounted to NIS 71 million, an increase of 27% compared to revenues of NIS 56 million in 2019. Operating profit amounted to NIS 12.3 million in 2020 (operating profitability rate of 17%) and profit Net income amounted to NIS 8.7 million.

“The deal with Cheap Stock is part of the chain’s strategic move to expand through a launch activity for the food retail business. We identify growth potential in the discount industry in Israel and the synergy between the companies’ activities will create great value and improve the customer service experience.” Said Eitan Yohannoff, CEO of the Yohannoff chain With respect to the transaction. “In line with the company’s vision, we expect to increase activity significantly and flood the value of Cheap Stock while examining market conditions with the intention of making a future IPO.”

Yochananoff’s move comes against the backdrop of changes in the local stock market: Last September it was issued


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By the Apax Foundation, and at the same time learned that a group


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It will operate branches in the Greek stock jumbo chain in Israel – which led to a legal battle in the company’s name, as well as its logo, against the Israeli “jumbo stock” chain.

Yesterday, Yohannoff reported on the purchase of land in Petah Tikva in exchange for NIS 70 million, on which he will establish a new branch. The chain has 28 branches and by the end of 2021 it is expected to open 7 more. In the third quarter, Yohannoff’s revenues amounted to NIS 820 million and net profit amounted to NIS 10.5 million, an increase of 7% and a decrease of 40%, respectively, compared with the corresponding quarter data. In the last 12 months, the share has risen by 5.5% and is currently traded at a value of about NIS 2 billion.

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