Terminal X Cancels 11 Million Shekel Acquisition of Design Retailer Soho
Terminal X has cancelled its acquisition of a controlling stake in design retailer Soho due to negotiation gaps, halting its planned expansion into home decor goods.
Terminal X, the e-commerce company under the Fox Group led by Harel Wiesel, has seen independent brand acquisitions become a key growth driver. In the second quarter of the year, the gross profit margin for independent brand operations stood at approximately 69%, compared to about 44% for the company's proprietary products.
The Failed Acquisition of Soho
Following strategic acquisitions in fashion, makeup, and professional sports, the company sought to expand its footprint in the home and design sector by acquiring a controlling stake in Soho. However, the deal has officially collapsed.
On September 16, Terminal X signed a memorandum of understanding to acquire a 50.01% stake in Soho for 11 million shekels, with up to 8 million shekels designated for repaying a subsidiary's debt. As reported by Calcalist, approximately three weeks after the announcement, the company announced the cancellation of the transaction due to gaps identified during negotiations.
Mutual Decision to Terminate Talks
While the company has not detailed the specific disputes leading to the mutual cancellation, the initial MOU was non-binding. The completion of the acquisition was contingent upon due diligence, binding agreements, and necessary regulatory approvals.
"The parties decided to conclude negotiations well before the expiration of the 90-day exclusivity period granted to Terminal X."
Founded in 2004, Soho is owned by founder and CEO Etzion Valach, who was slated to continue managing the retailer post-acquisition. The chain operates 12 stores, employs around 100 workers, and runs an active e-commerce site and wholesale division. Despite the setback, Terminal X continues to market home goods through existing brands such as Fox Home and Terminal X Home.
