Avital Brothers Sell 50% Stake in Tachanat Lechem to Kamari Group

The Avital brothers are selling a 50% stake in their bakery and cafe chain, Tachanat Lechem, to the Kamari Group. According to Calcalist, Shai and Eran Avital have signed a memorandum of understanding for the sale of 50% of the cafes to the Kamari Group. The deal is valued at a company valuation of 23 million NIS and includes both cafe brands owned by the brothers: Tachanat Lechem and BREADCAFE. The final signing and completion of the transaction are expected within about two months. Representatives of Tachanat Lechem confirmed the information.

Tachanat Lechem currently operates 16 branches, with another 6 branches under construction. The chain's branches are located in city centers, shopping complexes, and some operate inside major medical centers such as Rambam Hospital in Haifa, Beilinson Hospital in Petah Tikva, Meir Hospital in Kfar Saba, Kaplan Hospital in Rehovot, and HaEmek Hospital in Afula. The chain also operates branches in Ramat Gan, Givatayim, Herzliya, Petah Tikva, Ra'anana, Acre, Rosh HaAyin, and Mitzpe Ramon, with a new branch soon to open at the Mall Hayam in Eilat.

Future Expansion and Partnership Details

The chain is also contracted to open two additional branches in Petah Tikva and one in Kfar Yona, while actively seeking locations for further expansion in Rishon LeZion, Kiryat Ono, and Holon. The potential for Tachanat Lechem is to reach 40 to 50 branches nationwide. Furthermore, the deal includes the Kamari Group's entry into a partnership for the second chain founded by the Avital brothers, BREADCAFE, which currently comprises six branches.

"We are remaining the brand owners and will continue to develop it with the help of the Kamari Group, which will give us tremendous financial strength and contribute to the development of the brands," said Shai Avital.

As part of the deal with the Kamari Group, the Avital brothers will remain the CEOs of the chain, focusing on branch expansion and finding franchisees. The majority of the chain's branches operate under a full franchise model or an operational franchise model with partial ownership by the franchisee. Tachanat Lechem operates on a business model where franchisees pay about 3% of their turnover to the chain owners, compared to the industry average of about 5%.

The Acquiring Kamari Group

The acquiring entity, Kamari Group, is owned by Assaf Kamari (33.4%), Hodaya Group (33.3%), and Tony Ziv and Yossi Mizrahi (33.3%). The group operates 130 convenience stores under brands such as Seven Express, Candyland, Sweet & Toys, and Hamama. In addition, the group operates 50 franchised branches in fields such as cafes, fast food, restaurants, pharmacies, and convenience stores, cooperating with major Israeli brands including Arcaffé, Roladin, Golda, and Aroma.