Sources inform ''Globes'' that Home Center DIY Ltd., owned by Fishman Holdings, is considering selling 25% of the chain to a strategic investor. The proceeds will be used to finance expansion overseas.
It cannot be ruled out that a larger share of the company might be sold. Market sources said negotiations with Home Center talked about the sale of over 25% of the company at a company value of $120 million. Home Center’s turnover is NIS 1 billion a year, compared with its rival ACE Marketing Chains Ltd. (ACE Israel), with NIS 550 million in turnover and a company value of $20-25 million.
Fishman Retail Chains chairman Eyal Fishman confirmed to “Globes” that there were negotiations a year ago, but that there was no active search for an investor at this time. He said, however, that the possibility of bringing in local investors in Russia and Serbia as local partners was being considered. Home Center is about to establish two huge stores in Russia and two in Serbia.
Home Center operates in Cyprus on the basis of a business model involving a local partner with a 50% stake.
Home Center has 42 stores in Israel, operating on the giant store format, selling do-it-yourself products.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes.co.il - on July 7, 2005