Super-Pharm acquires the Erroka chain in a deal valued at NIS 75 million

Super-Pharm acquires the Erroka chain, in a deal valued at NIS 75 million. This was announced by the companies. Completion of the transaction is subject to the approval of the Competition Authority.
Erroka operates about 60 branches selling sunglasses of fashion houses and international brands. Super-Pharm operates optics departments that offer vision tests and are mainly engaged in the sale of eyeglasses and contact lenses. Completion of the transaction is subject to the approval of the Competition Authority.
The Erroka chain belongs to the powerful Iroka group owned by Michael and Jacob Wolf. It is the smallest of the optical chains currently operating in Israel, and employs about 200 employees in the country, who will be absorbed together with the operations at Super-Pharm, subject to the completion of the deal.
Super-Pharm is the largest pharmacy chain in Israel, which has about 280 branches and operates through franchisees. Since it was established, Super-Pharm has been operating under a pharmacy license, and operates cosmetics, optics and toiletries departments alongside its pharmacies. Super-Pharm operates optics departments in its branches under the "Super-Pharm Optics" brand. The optical departments in the branches offer vision testing services by optometrists in about a third of the chain's stores. Part of the chain's optical sales activity comes from the company's private brand - UNIC and the collection of glasses that it developed together with Noa Kirel. The chain's specialization focuses on the professional field of eyeglasses, and it is considered For a smaller player in the solar field.
The Israeli optics market is saturated with competitors and is characterized by specialized stores operated by private optometrists and chains, led by Halperin, Opticana and Carolina Lemka. The market is estimated to have sales of approximately NIS 2 billion per year, and includes approximately 1,300 specialty stores.
Super-Pharm has been looking for a very long time for an opportunity to enter the field of optics - and wanted to acquire an existing chain to increase its presence in the field. From the point of view of the business model - this is an area that touches health and beauty, areas in which Super-Pharm considers itself an expert. The margins in optics in Israel are considered very large, and this increases the power of the chain in the shopping area. In addition, it will save many costs, because the laboratory will become one laboratory.
Super-Pharm has been trying to enter the field of optics for some time. A year ago, in July 2021, it was announced that Super-Pharm was in advanced negotiations to purchase Opticana, but the sale did not materialize. Since then, the company has tried in other arenas. Super-Pharm sees great business importance in entering the optics arena, which will create synergy for it and also strengthen its strength in the field the optics.
Also, between Luxotica and Super Pharm there is an old dispute - this is against the background of Luxotica's attempts to prevent the chain from conducting promotions and selling Luxotica products (such as Ray Ban) at low prices - which it purchased through parallel imports and not from Luxotica Israel. A few years ago, the Competition Authority even carried out an inspection following a complaint by SuperPharm that Luxotica blocked them from lowering prices. This test ended in nothing.