At a valuation of 200 million shekels: Fox takes control of Itay Brands

The Fox Group is increasing its holdings in the fashion brand Itay Brands to 63%, as part of a new agreement signed with the other shareholders in the company — Itay Arbiv, and a company owned by Adam Friedler and Ohad Sandler. The agreement, which replaces a previous option contract, includes an updated option mechanism that could increase the group's holdings up to 76%, with a total investment of up to 40 million shekels.

In the first stage, the Fox Group will purchase 7% of Itay Brands shares for a total consideration of 11.5 million shekels. Upon completion of the transaction, the group's stake will rise from 56% to 63%, while the two other shareholders will each hold 18.5% of the shares.

The new agreement grants the group two additional options to purchase shares:

1. An option to purchase 3% of Itay Brands shares based on a company valuation of 200 million shekels, exercisable between January 2027 and April 2028.

2. An option to purchase an additional 10% based on a valuation of 225 million shekels, exercisable during January 2027 only, subject to adjustments for dividends distributed until the exercise date.

If all options are exercised, the Fox Group will invest a total of approximately 40 million shekels in the acquisition of an additional 20% of Itay Brands shares, and the group's stake in the brand will increase to 76%.

"This agreement reflects the group's confidence in the Itay Brands brand and our commitment to continue investing in its development, expanding its operations, and strengthening its position in the market. This is a natural continuation of the group's long-term commitment and our desire to continue building a leading and strong brand over many years," said Harel Wiesel, CEO and owner of the Fox Group.