While Gottex Brands (Zara Israel) hesitated over completing the deal to buy 50% of the prestige brands of the UK-based Arcadia group in Israel, the Golf & Co. (TASE:GOLF) group has snatched the deal from under its nose.
Sources inform "Globes" that, last night, the Golf group signed a deal with Haim Sakal's Sakal Holdings whereby Golf will buy half the business of the Arcadia brands in Israel at a valuation of NIS 56 million. For many years, Sakal Holdings has held the franchise for Arcadia's brands. Its activity in this area includes the Topshop brand and chain of ten stores, Topman (four branches), Dorothy Perkins (three branches) and Miss Selfridge (three branches).
The annual sales turnover of the Topshop and Topman brands is estimated at NIS 60-70 million, and their operating profit at 18-20%, considered high for the fashion business.
Sakal's decision to open negotiations with Golf apparently came after prolonged delays in the execution of the deal with Gottex Brands and consequent damage to the brands' business in recent weeks. This morning, Sakal and Golf CEO Eli Mizroch left for the UK to obtain the consent of the Arcadia group to the deal, with the aim of closing it quickly. The deal also requires the approval of the Antitrust Authority.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2014
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