Discount Capital Acquires 20% Stake in Naton for 42 Million Shekels
Discount Capital is acquiring a 20% stake in services firm Naton for 42 million shekels at a 210 million shekel valuation. Following the deal, controlled by Brand, Naton shows strong revenue growth and an order backlog reaching 2.2 billion shekels.
Discount Capital, the investment arm of Discount Bank, is acquiring a 20% stake in the services company Naton for an investment of 42 million shekels, Calcalist has learned. The investment is based on a company valuation of 210 million shekels for Naton, which employs 3,200 people. This is the first transaction conducted by Discount Capital under its new CEO, Michal Kissos, who assumed her role at the beginning of the month. However, the deal was initiated prior to her appointment and was led by Hanoch Papushado, Discount Capital's head of investments.
Business Scope and Financial Growth
Naton maintains 6 million square meters of buildings, providing them with integrated management, cleaning, security, operations, and maintenance services. The company's revenues have grown significantly in recent years: in 2024 they totaled 510 million shekels, in 2025 they reached 580 million shekels, and in 2026 they are projected to reach an annual run rate of 670 million shekels, based on first-half revenues.
«The investment reflects a significant appreciation in value within less than a year, as Naton's order backlog expands to 2.2 billion shekels through 2030.»
Brand Group's Transactions and Management
The public company Brand, controlled by Liran Giladi, acquired a 60% stake in Naton from its three founding partners in November 2025 for 76 million shekels, based on a company valuation of 127 million shekels. In July, Brand exercised an option to acquire an additional 40% for 64 million shekels, and subsequently invested another 21 million shekels. In total, Brand invested 161 million shekels in Naton. Following Discount Capital's entry, Brand will hold an 80% stake in Naton.
The equity provided by Brand for the acquisition of Naton stood at 50 million shekels, and its holding, currently valued at approximately 168 million shekels according to the current transaction valuation, reflects significant value creation in less than a year. Brand appointed Eli Aharoni as chairman of Naton and Itai Ben Avi as group CEO. Naton's order backlog has grown to 2.2 billion shekels through 2030. Brand itself trades at a market cap of 155 million shekels. About a month ago, Brand completed the sale of its renewable energy operations in Poland and Italy to Sunflower for a total consideration of approximately 33.5 million shekels. The transaction is expected to yield Brand a profit of about 19 million shekels, to be recorded in the third-quarter results.
