For 160 million shekels: former president of the Contractors Association sold his real estate company
Raul Sarugo and Ampa signed an agreement for the acquisition of his construction company, which holds rights to 6 urban renewal projects expected to include about 1,400 new housing units.
It is now official: the Ampa company is acquiring the operations of the Reuven Sarugo Construction Company Ltd., owned by the former president of the Contractors Association, Raul Sarugo. The deal is valued at 160 million shekels. According to the agreement, approximately 80 million shekels will be paid upon the deal's completion, with the balance of 80 million shekels to be paid in accordance with meeting established project milestones. The transaction was carried out through the group's residential arm, Ampa Israel, managed by Eli Agam, and its completion is subject to the fulfillment of conditions precedent set in the agreement.
As previously reported, advanced negotiations between the parties were underway back in January, but the conditions for signing have only now matured. The deal constitutes another layer in Ampa's growth strategy in residential development and urban renewal, joining a series of initiatives the company has promoted over the past year to expand its activity in the sector.
Under the agreement, Ampa Israel is expected to advance six urban renewal projects in Rishon LeZion and Ness Ziona, which are in various stages of planning and execution. According to the company's estimates, these projects are expected to include approximately 1,400 new housing units.
Within the framework of the understandings, Raul Sarugo is expected to continue to support the company's activities and project promotion even after the deal's completion to ensure professional continuity, the preservation of accumulated knowledge and experience, and the continued advancement of projects for the benefit of apartment owners and business partners.
The agreement with the Sarugo company follows another strategic deal recently reported by Ampa, in which the company will acquire, for approximately 78 million shekels, 49% of the rights in two large-scale urban renewal projects from the Bonei HaTichon company in Jerusalem and its surrounding areas. Both projects combined hold the potential for the construction of about 1,800 new housing units in accordance with approved city building plans.
Both moves reflect Ampa's strategy to significantly expand its activity in urban renewal through a combination of strategic partnerships, the acquisition of quality company operations, and the development of large-scale projects in high-demand areas.
Zohar Levy, CEO of the Ampa Group, stated:
"We are working consistently to develop new growth engines and expand the activity of the Ampa Group while maintaining a diverse and balanced portfolio. The field of residential and urban renewal constitutes a significant strategic layer for the group, and the agreement with the Sarugo company, alongside the agreement we reported recently with Bonei HaTichon, are central to the realization of this strategy. We believe these moves will strengthen Ampa's status, expand our operational platform, and create long-term value for shareholders, alongside creating significant value for apartment owners and our business partners."
Eli Agam, CEO of Ampa Israel, added:
"We are proud to add the Sarugo company to Ampa Israel's operations—a company with a glorious tradition, values, and an uncompromising reputation. We are happy that Raul will continue to accompany us and the promotion of the projects. The agreement is a significant milestone for Ampa Israel. The quality project backlog of Sarugo, alongside the cooperation with Bonei HaTichon, gives us significant momentum and allows us to bring the professional standards, experience, and financial robustness of Ampa to the field of urban renewal for the benefit of all our partners."
Sarugo stated in response:
"I and the other shareholders, the Sarugo family, are proud of the company's achievements, its reputation, and its positioning as one of the best and leading family construction companies in Israel. We are happy about the transfer of control into the hands of a high-quality and strong company like Ampa, which will leverage the company's achievements to new heights. Every family company in Israel exhausts itself at a certain stage, and we have done so after over 50 years of successful activity. I am setting out on a new path and to new challenges in the Israeli economy and infrastructure industry, in the hope that they will yield value and solace to my dear family, which suffered a severe tragedy in the last year after the death of my dear son Roi, of blessed memory, in the surfing disaster in Herzliya."
