Energy company Alon-Dor is in advanced negotiations to acquire control of Pizza Hut Israel and Kentucky Fried Chicken Israel at a company value of $9 million, from Shlomo DeHoki, who owns 64% of the company through Pizza Hut Holdings.
In September 2000, Alon-Dor bought 25% of Pizza Hut Israel for $3.2 million, at a company value of $13 million.
Alon-Dor is planning to buy full control of Pizza Hut Israel, and later bring in one of Israel’s biggest retail chains as a strategic partner.
The possibility of selling DeHoki’s holding in the company to the Sbarro chain was examined recently, but negotiations did not bear fruit.
In response to the report, Shlomo DeHoki told “Globes”: “I don’t know of any deal. When there’s a deal, we’ll undoubtedly announce it.” DeHoki did not deny reports that the possibility of establishing administrative cooperation between Pizza Hut and other fast-food chains, including Burger King, had been considered. According to DeHoki, the major obstacle to such a deal would be obtaining the consent of the international companies that own the brands.
Alon-Dor CEO David Weissman’s comment on the report was not forthcoming.
Alon-Dor operates 113 gas stations around Israel, 55 under the brand name Dor, and 58 under the brand name Alon.
Piza Hut Israel has 40 outlets, and sources in the field estimate its turnover at NIS 80 million a year.
Pizza Hut Israel has posted increased losses in recent years, due to its inability to position itself among fast-food chains and fast-food restaurants. Consequently, sources in the fast food field consider Pizza Hut Israel a failure.
Published by Israel's Business Arena on 27 March, 2001