Ace Global Approves Franchise Transfer to Ganon Group with Reduced Branch Targets
Ace Global approved its franchise transfer to group Ganon as part of Multi Retail's 168 million shekel acquisition. The minimum required branches in Israel were reduced from 25 to 21 following target shortfalls.
Ace Global has approved the transfer of its franchise to the DIY retail group Ganon, completing the suspension conditions for the acquisition of Multi Retail control. However, the minimum required number of active branches in Israel was reduced from 25 to 21 due to a failure to meet previous targets.
Under the new agreement, Multi Retail is required to operate at least 21 branches until the end of 2027, and at least 22 branches starting in January 2028 for the remainder of the franchise term. Additionally, the company will face a penalty if it fails to meet purchasing targets with Ace Global this year. The audit committee and board approved the arrangement, while outgoing and incoming controlling shareholders agreed to cover a $40,000 transfer fee and indemnify the company against potential claims.
Two months ago, the Competition Authority approved the deal signed last August, under which Zol Stock, owned by Ronen Ganon and partners, will acquire a 72.3% stake in Multi Retail for 168 million shekels. The sellers include the Kedma investment fund and CEO Itzik Ozana. Multi Retail operates the Ace, Auto Depot, Batayli, and Urban chains. The company reported a net profit of 7.5 million shekels for the first half of the year, compared to a net loss of 4.7 million shekels in the same period last year, with sales rising to 356 million shekels.
