Gad Dairies plans IPO at NIS 725m valuation

The wave of flotations on the Tel Aviv Stock Exchange is gathering momentum, and Gad Dairies is expected to become the fourteenth company this year to make its debut on the exchange, after it published a draft prospectus at the end of last week for an IPO at a pre-money valuation of NIS 725 million.

The food company seeks to raise NIS 280 million, 75% of which will be used for the move of the dairies from their current site in Bat Yam to a new site in the Timorim industrial zone near Be’er Tuvia. The rest of the money raised, NIS 70 million, will be from an offer for sale by existing shareholder Green Lantern Capital, an investment fund led by Richard Hunter, and its partners Migdal and Discount Capital, which will make a profitable exit from part of their investments in the company. Following the IPO, led by underwriters Discount Capital and Barak Capital, the stake of the company’s founder and chairperson Ezra Cohen, who currently holds 50% of the shares, will be diluted to 39%, while Green Lantern and its partners will hold 31%.

Gad Dairies’ future neighbor at Timorim, food products company Baladi, became listed at the beginning of this year and has since seen its share price rise by 70%.

Ezra Cohen founded Gad Dairies in 1992. The company produces and sells cheeses in the local market and in the US. Over the years it has consistently expanded its market share in Israel, reaching 6% in the first quarter this year, double what it was a decade ago.

Gad Dairies, managed by Amir Aharon, had revenue of NIS 166 million in the first quarter of this year, 9% more than in the corresponding quarter of 2024. Net profit shot up by 78% year-on-year to NIS 10.2 million.

The company’s new site at Timorim, which will include a logistics center, will be spread over 22 dunams (5.5 acres), and will have double the production capacity of the Bat Yam site. The investment in the new site is estimated at NIS 180-200 million. The company estimates that the move will add NIS 13-17 million to its annual profit.

Furthermore, last month, Gad Dairies agreed to buy control (51%) of Wyler Farm for NIS 46 million. The acquisition of Wyler Farm, which produces tofu and is a developer of vegetable-based milk product alternatives, is intended to support Gad Dairies’ strategic plan to compete with Strauss and Tnuva in this field. The company intends to launch its new brand, “Feel Gad” this year.

Founder ensures family members gain

The Gad Dairies prospectus reveals a series of insider deals. The new site at Timorim will be leased from Gad Real Estate, a company owned by Ezra Cohen and Mega Or, for 25 years, with an option on a further ten years, for NIS 16-17 million annually. Cohen recently bought Gad Dairies’ 50% stake in Gad Real Estate at its book value. When the IPO is completed, the management fees payable to Cohen will rise from NIS 1.5 million to NIS 2.2 million annually. This is addition to an annual salary of NIS 1.8 million, and annual rent that he currently receives of NIS 1.6 million.

Competition Authority fines Strauss Group NIS 111m

The prospectus also reveals that Gad Dairies has a ten-year exclusive agreement for purchasing Bulgarian cheese from Deshen Diary, controlled by Cohen’s brother and cousin. There is also a distribution agreement with Para Para, another company belonging to Cohen’s brother, on terms different from those of other distributors.

Published by Globes, Israel business news – en.globes.co.il – on August 25, 2025.

Source link