Terminal X to Acquire Controlling Stake in Design Chain SOHO for 11M NIS
Terminal X signed a non-binding MOU to acquire a 50.01% stake in the design and lifestyle chain SOHO for 11 million NIS, valuing SOHO at 22 million NIS.
Terminal X is moving to acquire a controlling stake in the design and lifestyle retail chain SOHO. The company announced today (Wednesday) that it has signed a non-binding memorandum of understanding to acquire a 50.01% stake in SOHO for 11 million NIS. The deal values SOHO at approximately 22 million NIS, before adjustments agreed upon by the parties. Up to 8 million NIS of the consideration will be used to repay a subsidiary's debt.
The transaction is part of Terminal X's ongoing acquisition strategy, which has seen the company gradually transition from selling third-party brands to owning independent brands and operations. In recent years, the company has acquired controlling stakes in Sisters, Strongful, Ada Lazorgan, Ainker, Ronit Yam, and Sde Bar, investing a total of approximately 39 million NIS in initial controlling acquisitions across these six companies.
Strategic Expansion and Future Plans
Only a couple of weeks ago, Terminal X CEO Nir Horowitz stated in an interview with Globes that the company is constantly looking for companies with a distinct DNA. The goal is to leverage Terminal X's e-commerce, logistics, and marketing infrastructure to scale small companies and brands. During the company's recent investor call, he also noted that Terminal X expects to execute additional acquisitions later this year.
"We are constantly looking for companies with a distinct DNA, and our goal is to leverage our infrastructure to scale them," said Nir Horowitz.
Deal Structure and Options
SOHO, fully owned by CEO Eztion Valach, was founded in 2004 and operates in the import and distribution of design and lifestyle products for the home, office, and personal use. The company currently operates 12 concept stores, alongside an e-commerce website and wholesale operations, employing about 100 people.
As part of the deal, Valach is expected to continue serving as SOHO's CEO for a defined period, while Terminal X will be entitled to appoint a majority of the board of directors. Additionally, Terminal X received options to purchase up to an additional 37.5% of SOHO's share capital between 2028 and 2031.
