Gad Dairies raised NIS 280 million at a pre-money valuation of NIS 725 million in an IPO on the Tel Aviv Stock Exchange yesterday. Demand for the offering amounted to NIS 900 million.
The company will use most of the proceeds of the offering to finance the transfer of its operations from Bat Yam to a new site in the Timorim industrial zone near Kiryat Malachi. The remainder will go to the controlling shareholders.
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Gad Dairies plans IPO at NIS 725m valuation
Gad Dairies is currently jointly controlled (50%-50%) by its founder Ezra Cohen and Richard Hunter’s investment firm Green Lantern, in which Discount Capital has a 15% stake and Migdal Insurance a 24.5% stake. Cohen remains the largest single shareholder in the company, with a holding of 39%, while Green Lantern holds 31% and the public 30%. For Green Lantern, the IPO represents a significant exit, as it bought its shares in Gad Dairies from Cohen a decade ago at a valuation of NIS 200 million.
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. The company, 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 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.
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.
Published by Globes, Israel business news – en.globes.co.il – on September 8, 2025.
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