Shlomo Group announced this morning the completion of the 15% investment in the equity of the Shlomo vehicle and credit company by US investment firm Affinity Partners.
Affinity, which was founded by Jared Kushner, has raised $2 billion from the sovereign wealth funds of Saudi Arabia, UAE and Qatar. Kushnir said, "We are thrilled to connect with the Shmeltzer family through our investment in the Shlomo Group., which continues to demonstrate resilience, like the entire country. Affinity expect more promising business opportunities in Israel and the region."
The aim of the investment is to expand the Shlomo Group's vehicle and financing company in Israel to other countries in the Middle East and North Africa.
The deal has been completed amid the Israel-Hamas war and the complicated macroeconomic and geopolitical conditions currently prevailing in Israel and the Middle East. The investment by Affinity Partners reflects a valuation of NIS 2.7 billion for the Shlomo Group's vehicle and financing company.
Under the terms of the agreement, the new company will only own the companies that belong to the automobile division of the Shlomo Group, which includes the a leasing, renting and vehicle sales activities. Shlomo Group will extend a loan of NIS 46.75 million to Affinity Partners to allow them to complete the deal.
With a fleet of over 78,000 vehicles, Shlomo Group has a 30% market shares of the leasing and car rental market in Israel.
Published by Globes, Israel business news - en.globes.co.il - on February 1, 2024.
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