Paz Oil Co. controlling shareholder Zadik Bino, who has been trying to get rid of the Burger Ranch fast food chain for two years, will sell it to strategic consultant Yosef Hoshinsky. Hoshinsky owns 10% of the Tiv Taam supermarket chain, and is one of the founders of Airport City, near Ben Gurion Airport.
Hoshinksky will pay NIS 40 million in the deal: half immediately in cash, and the rest within three years.
At the end of 2000, Hoshinsky sold his holding in Airport City for $10 million. He is financing the current deal from his own private sources.
According to information obtained by "Globes", Burger Ranch will finish 2005 with a turnover of NIS 145 million. Paz invested Burger Ranch’s estimated NIS 4 million operating profit in buying branches from franchise holders.
Burger Ranch currently has 70 branches, of which 12 are franchises. Burger Ranch lost NIS 5.6 million in 2004, and, according to projections, will break even in 2005.
Published by Globes [online] - www.globes.co.il - on January 1, 2006