Paz Oil Company Ltd. (TASE:PZOL) is in advanced talks to buy the Super Yuda retail chain. The planned acquisition is part of new CEO Nir Sztern's strategy of expanding the energy company and gas station chain's retail activities to compensate for the weakening of its refinery operations.
Super Yuda, founded by Yehuda Gueta, has 16 branches with estimated annual revenue of NIS 250-300 million. Paz is expected to pay NIS 130 million to buy the chain.
Paz is already deeply involved in retail sales with its 241 outlet Yellow convenience store chain in its gas station forecourts with annual revenue of almost NIS 1 billion. The entry of Paz into the supermarket sector would not only increase its retail consumer goods revenue by 30% but also improve its wholesale purchasing power.
Super Yuda supermarkets are open 24/7 and 30% of their revenue reportedly comes from weekend sales. It competes with the AM:PM chain, which is owned by Paz's rival the Alon-Dor gas station chain.
Super Yuda had been in talks to be acquired by the Victory supermarket chain but the negotiations floundered. Paz for its part had been linked with a bid for the financially troubled Yeinot Bitan supermarket chain.
Published by Globes, Israel business news - en.globes.co.il - on August 9, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020