The deal was done via the Generique group, owned by the Africa Israel group and its Canadian partners.
Africa-Israel Investments announced today that it has signed an agreement to acquire, via the Generique group, the Zara fashion franchise in Israel for NIS 57 million. Africa-Israel Investments CEO Pinchas Cohen said that his group was happy to have carried the deal through, as it was synergistic with its investments in the textile and fashion sectors, and represented another development in the group's fashion activities. Zara is owned by Spain's Inditex group. The acquisition includes other Inditex group brand names including Pull and Bear, and Bershka, which is due to open stores in Israel. The chairman of Zara Israel will be Joey Schwebel, the CEO and chairman of bathing suit companies Christian Canada and Gottex. The deal was done via the Generique group, owned in equal parts by the Africa Israel group and its Canadian partners Schwebel and Dan Elituv. Zara Israel has an annual turnover of over NIS 200 million. The chain has 11 stores and intends to open at least three more. The chain employs a staff of over 500. To date, the franchise was held by beleaguered retail chain Hamashbir Lazarchan. On November 20, "Globes" reported that Africa Israel intended to buy the Zara franchise. The market estimated the selling price at NIS 60-70 million. After closing the deal with Hamashbir Lazarchan, the buyers are expected to negotiate the duration of the franchise contract with Inditex. Africa-Israel Investments owns 50% of the Generique group. The remainder is owned by its Canadian partners, who are active in the North American fashion and textile industries. Generique acquired control of Christina of Canada last year for $43 million (Canadian dollars). Africa-Israel recently exercised an option to sell full ownership in Gottex to Generique, for $7.5 million.
Published by Globes [online] - www.globes.co.il - on 01 December 2002