The deal sees NIS. 40 million moving direct to Saar shareholders. A further NIS. 40 million is earmarked for investment in the company. The parties plan on entering new categories, expanding Saar’s areas of activity, and opening 20 new stores
Electra Consumer Products
Electra Consumer Products is entering the field of tours and leisure activities. The company, which is controlled by Elco (47.8%), signed an agreement to purchase control (50.01%) of Saar Trade Ltd, franchisee of the Columbia brand in Israel. As part of the transaction carrying a value of NIS. 130 million Electra will pay NIS. 80 million. Half this sum will be transferred direct to Saar shareholders. The remainder will be invested in the company for ongoing business development.
Saar was established in 1994 by Tomer ben-Senior and Aviad Tzabari, who serve as co-CEOs. The company imports and produces clothing and equipment for travelers, campers, skiers and snowboarders, and for field and leisure sports, having gained the Israel franchise for the global brand, Columbia. The company operates three retail chains comprising a total of 34 branches: the Columbia chain for touring and leisure fashion, with 17 stores; the Outsiders chain with 8 stores; and the Shvilim chain for internal Israeli trips, numbering 9 stores. In addition to the physical stores, the company also operates two e-Commerce websites: Columbia and Outsiders.
Saar additionally sells its products to stores and chains across Israel, and supplies military and security forces, government offices, and companies in the fields of security, brand promotion, hi-tech and others.
According to Electra, Saar’s 2020 sales reached NIS. 126.6 million with an operational profit of NIS. 23.5 million (18,5% of sales). With the transaction’s completion, the parties plan on entering new categories and expanding their current areas of activity as well as opening 20 new stores in each of the three chain and extending its online activities.
Tzvika Schvimmer, Electra Consumer Products’ CEO: “This partnership will lead to accelerated development of activities and their expansion to the point of doubling sales within three years, and leading the entire chain. The field of trips and outdoor activities is showing strength ongoing growth. We’re planning on infusing new standards into this arena and becoming its leader.”