The acquisition of fashion and homeware group Golf (TASE: GOLF) by Delta Israel Brands (TASE: DLTI) will not go ahead. After the parties reached non-binding agreement in principle, and intensive negotiations that continued until last night, the two companies failed to reach agreement on the acquisition price and in relation to the indications from the Competition Authority that Delta would have to sell the Polgat and Intima apparel chains. Golf refused to part with the two chains, and so the agreement was cancelled.
Golf, which is controlled by Len Blavatnik’s Clal Industries (52%), reported in February that Delta Israel had made a non-binding offer to acquire it at a valuation of NIS 450 million.
The notification to the stock exchange in February stated that if the deal was not completed, Clal Industries and bookstore chain Steimatzky (owned by Eyal Greenberg, who is also CEO of Golf) would examine the possibility that Greenberg would buy shares that would bring him to joint control, a possibility that now does not seem out of the question.
This morning, Golf notified the stock exchange that the negotiations had ended, and said that “The Golf group will continue its intensive independent activity in the Israeli market, while deepening possible cooperative ventures in the market, including with the Steimatzky group headed by Eyal Greenberg, who is also CEO of the company.”
The Golf chain currently consists of 320 branches. The company designs and sells clothing, textiles, and homeware. Among its brands are Golf, Golf Home, Golf Kids, Kitan, and Polgat.
Delta Israel Brands is a subsidiary of Delta Galil (TASE: DELG), controlled by Isaac Dabah. It designs and sells underwear and sports and leisure wear. It has 205 stores in Israel, under the Delta, Fix, and Panta Rei brands among others. Delta Israel Brands’ CEO is Anat Bogner, daughter of legendary Golf CEO Ilana Kaufman. Bogner herself worked at Golf in the past.
Published by Globes, Israel business news – en.globes.co.il – on June 13, 2023.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.
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