Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. (TASE:RMLI) is expanding. The chain officially announced today that it is buying seven branches of the troubled Mega chain for a total of NIS 38 million. The company said that it would employ 1,000 workers in those branches.
After getting into financial difficulties, Mega, owned by Alon Blue Square, has been negotiating a debt arrangment with its suppliers, lender banks, and lessors.
The purchased branches are in Bnei Brak, Hadera, Haifa, Yokne'am, Yehud, Nazareth, and Petah Tikva. Completion of the deal is contingent on a number of conditions, including approval by the Antitrust Authority director general and signing new leases with the property owners after negotiations with them on terms acceptable to Rami Levy.
Rami Levy Chain Stores, which had 34 branches before the acquisition, is expected to open three more new branches by the end of the fourth quarter of 2015, in addition to the newly purchased ones. The chain has already opened five new branches in 2015.
Rami Levy said, "Rami Levy Chain Stores Hashikma Marketing continues to stick to its strategic plan of expanding its market share by acquiring branches and opening new branches in areas where the company does not operate. In the current deal, the company took advantage of an opportunity to buy seven branches in carefully selected locations, and will employ about 1,000 workers in the new branches, more than double the number of employees previously employed there. The chain has shortened the time and reduced the resources needed to open the same number of branches. We believe that the business of these branches can be improved within a short time."
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2015
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