Shufersal Group has reached a non-binding agreement with the shareholders of Mini Line for NIS 560 million

The Shufersal Group announced today (Thursday) that it has reached a non-binding agreement with the shareholders of Mini Line Ltd., for the purchase of 60% of the shares of Mini Line, an importer of electrical appliances, for NIS 560 million, reflecting a value of NIS 936 million for Mini Line.
According to Shufersal, the acquisition of control of the mini line is part of the group's strategy to expand its activities in the retail field and enter complementary fields that will offer added value and products of the highest quality to the largest customer club in Israel with 2 million customers. Mini Line is the official importer of home appliances from AEG, Samsung, and Electrolux, markets the air conditioning systems of the Japanese brand Fujitsu and also, the group operates the chain of electrical stores - ALM.
As part of the understandings reached by Shufersal with Mini Line, at the end of three years from the date of completion of the transaction, the company will have the option to purchase the balance of shares in Mini Line according to the value of Mini Line in the current transaction (NIS 936 million) or a multiplier of 10 Mini-Line will have the option to sell the company the balance of their shares according to the value of Mini-Line in the current transaction or according to a multiplier of 10 on the net profit, whichever is lower.
Shufersal will have a majority on the board of Mini Line and will also appoint the chairman. Mr. Avi Asher will serve as CEO of Minline for a period of at least 3 years. The understandings are subject to a due diligence by the Company, to the approvals of the Company's competent bodies, and to the signing of a detailed and binding agreement between the parties, which will be subject to various approvals, including the approval of the Competition Commissioner.