Leumi and Discount Banks Eye 30% Stake in Adler Chomsky Group

Leumi Partners and Discount Capital, the investment arms of Bank Leumi and Israel Discount Bank, are examining a joint investment in the Adler Chomsky Group, one of Israel's leading advertising agencies, at a valuation of approximately half a billion shekels. Under the emerging framework, each bank's investment arm would acquire a 15% stake, jointly holding 30% of the group's shares. Eyal Chomsky will retain control of the firm.

Structure of the Deal and Valuation

According to market sources, the deal is expected to combine a capital injection into the group with the acquisition of shares from existing shareholders, including Chomsky, minor shareholders, and managers. This structure will provide the company with fresh capital for continued development while allowing owners to cash out part of their holdings. Prior to the deal, Chomsky held about 70% of the group's shares, with the remainder held by managers and subsidiary partners. Following completion, his stake is projected to drop to roughly 50%, while managers and partners will be diluted by 10% combined to retain about 20%.

"The investment in Adler Chomsky reflects growing financial interest in major Israeli advertising groups, traditionally a sector untouched by institutional investors," a financial source noted.

Advertising Budgets and Market Dynamics

An interesting angle of the emerging investment involves the banks' advertising budgets. Israel Discount Bank is a client of Adler Chomsky, whereas Bank Leumi's advertising budget is handled by McCann Tel Aviv, Israel's largest advertising agency, where it is expected to remain. McCann is wholly owned by the American Omnicom Group, which does not admit local partners. Consequently, Adler Chomsky stands out as one of the few major advertising groups in Israel remaining under domestic ownership, making it an attractive target for financial institutions.

Established in 1996 by Reuven Adler and Eyal Chomsky, the group employs about 400 people. Its major clients include Bezeq, Colmobil, Mifal HaPayis, The Phoenix, Clall Insurance, and Electra. The Israeli advertising market is estimated at roughly 4.9 billion shekels in 2025, up from 4.5 billion shekels in 2021, representing an average annual growth rate of about 2%.