Klirmark Capital to invest over NIS 500m in Yeinot Bitan

Nahum Bitan

"The financial investment will enable Nahum Bitan to realize the group's huge potential," the announcement from the supermarket chain, Israel's second largest, said.

This morning, supermarket chain Yeinot Bitan announced substantial investment in the Yeinot Bitan-Mega group, controlled by Nahum Bitan, which has been in financial difficulties. Tel Aviv-based Klirmark Capital will invest over NIS 500 million. Details of the deal have not yet been released.

"The financial investment will enable Nahum Bitan to realize the group's huge potential, to make it more flexible, to meet operational needs, and to accelerate streamlining and growth measures towards a future stock market flotation."

Yeinot Bitan-Mega is the second largest retail chain in Israel, with some 160 branches.

The company's announcement goes on to say that "the money invested will enable us to upgrade our branches, install automatic checkouts, expand our importing activity, develop and grow our own-brand activity, our customer club, and online sales, as well as to repay bank debt and debts to the mega trustees." The deal is expected to close within a month.

"We considered several proposals that we received recently," Bitan said today, "and after examining them in depth we chose Klirmark Capital as our partners. All along the way, it has been important for me to take care of the chain and the company's employees; that has been my guiding concern, and that is what will continue to guide Yeinot Bitan in 2020."

Published by Globes, Israel business news - en.globes.co.il - on January 30, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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