A year ago, Ofer Gilboa didn't know what he bought. Today, he is up 160 million shekels
Gilboa, owner of the cargo airline Challenge Airlines, acquired control of Gaon Holdings last year and admitted at the time: 'It's not even clear to me yet what I bought.' Since then, he has enjoyed a 220% surge in the infrastructure company's stock, which tripled its profits in 2025 thanks to operational improvements.
About a year ago, businessman Ofer Gilboa surprised the market when he acquired control of the infrastructure and water company Gaon Holdings. At the time, Gilboa, owner of the cargo airline Challenge Airlines, declared that the deal was made without due diligence and that he 'did not yet know what kind of company he was getting.' A little over a year later, it seems that the surprising decision is starting to prove itself.
Since Gilboa acquired control, Gaon Holdings' stock has surged by almost 225%, with Gilboa recording a quick profit of almost 160 million shekels on paper. In the background, the subsidiary Gaon Group (68.5%), which constitutes the core activity of Gaon Holdings, underwent a strategic focus process under new management, designed to streamline operations along its value chain.
In May of last year, Gilboa acquired 65% of Gaon Holdings from the Viola Group and other investors, including Discount Capital, Lenny Recanati, and the heirs of Sami Shimon, for 57 million shekels. Gaon Group CEO Guy Regev also joined the move, teaming up with Gilboa by purchasing shares for 10 million shekels.
'It's not even clear to me yet what I bought, but it seemed like an interesting company,' he told Globes after the deal was completed. 'The State of Israel needs infrastructure, so it seems that this is an entry into an activity with a low level of risk.' A year later, the market value of Gaon Holdings has reached 375 million shekels. This reflects a value of 214 million shekels for Gilboa's holdings, while CEO Regev's holdings are worth 41 million shekels.
Gaon Group operates through three divisions: industry (manufacturing products for infrastructure, water, sewage, fuel, and gas); initiation and execution (planning and construction of transport infrastructure projects); and trade (focusing on systems such as fire extinguishing, plumbing, and electrical systems).
The company ended 2025 with revenues of about 654 million shekels, a growth of 7.5% from the previous year, and recorded a jump of almost 200% in net profit to about 33.5 million shekels, mainly thanks to an improvement in the operating profit margin in the industrial sector.
From fashion to transport and infrastructure
The move to acquire Gaon returned Gilboa to the field where he grew up. 'I was an industrialist in my past, and that is where I grew up,' he told Globes. 'I know how to look at industry and see what can be done to streamline and improve.' In the early 2000s, he teamed up with Zvika Barenboim to acquire the Polgat-Bagir conglomerate. In 2010, he acquired the struggling cargo airline CAL for 10 million dollars. Within a decade, he turned it into a company currently worth an estimated 1 billion dollars. Under the name Challenge Airlines, with a fleet of 11 Jumbo jets, the company records an annual revenue of 700-800 million dollars.
