Union’s Horesh Purchases 33% of Super-Pharm

The chain is currently in a challenging retail environment, due both to increasing regulation and to competition

Send in e-mailSend in e-mail
Israeli pharmacy chain, Super-Pharm.
Israeli pharmacy chain, Super-Pharm.Credit: Eyal Toueg

Businessman George Horesh, the controlling shareholder of Union, is buying 33% of the Super-Pharm pharmacy chain at a 1.7 billion shekel ($476 million) valuation.

Horesh will be paying 560 million shekels to Leumi Bank, Discount Bank and Super-Pharm controlling shareholder Leon Koffler. Union has business in the fields of vehicles, retail and real estate.

To really understand Israel and the Middle East - subscribe to Haaretz

Leumi Partners, the non-financial investment arm of Bank Leumi, bought 20% of Super-Pharm’s shares in 2007, and currently holds 15% of the pharmacy chain. The bank is due to receive 250 million shekels for its portion of the shares, and will earn 75 million in profits before tax. Discount Bank’s non-financial investment arm Discount Capital bought its shares in 2013, and holds 10% of the chain’s shares.

Union has retail operations in Israel abroad, and is the official importer for Toyota and H&M in Israel.

Super-Pharm is currently in a challenging retail environment, due both to increasing regulation and to competition. Grocery chain Super-Sol bought competing pharmacy chain Nu-Pharm and rebranded it as Be, making it into a more powerful, more professional competitor that Nu-Pharm was under the ownership of its previous owner, department store chain Hamashbir 365 Holdings.

Super-Pharm is thought to have annual sales turnover of 5 billion shekels in Israel as of 2018, and another 760 million shekels in Poland. Its EBITDA last year was 250 million shekels, and its net profit was 110 million shekels.