Aroma partner buys major stake in Arcaffe
A source close to the deal said the new Arcaffe partner, Yaron Yarkoni, who had been deputy CEO of Aroma Israel, will divest himself of his interest in Aroma.
The Shemer family, which owns the Arcaffe chain of coffee shops, has sold a 45% stake in its company to an investor who also owns a 10% stake in Aroma Israel - a competing cafe chain. A source close to the deal said the new Arcaffe partner, Yaron Yarkoni, who had been deputy CEO of Aroma Israel, will divest himself of his interest in Aroma.
The deal appears to have been carried out based on a market cap for Arcaffe of NIS 55 million to NIS 60 million. After the transaction is completed, the Shemers and Yarkoni will hold equal 45% stakes, with the remaining 10% held by Livorno-based Arcaffe Italy.
The Israeli Arcaffe chain operates about 30 cafe branches in Israel, in addition to branches of the Nova Joya Italian restaurant chain. A 50% stake in the restaurants is owned by former Arcaffe Israel CEO Zvika Eshet.
The Shemers and Yarkoni plan to expand into outlying parts of the country where they do not currently have branches, including some franchise locations. They also expect to expand their bakery locations, which currently operate at the Ramat Aviv mall in Tel Aviv, the Seven Stars mall in Herzilya and the Arim mall in Kfar Sava. They are also apparently considering expanding abroad in about a year.
Arcaffe Israel was founded in 1995.