SKY Fund Acquires 50% Stake in Israeli Catering Giant Lee-Bar
Private equity firm SKY acquires a 50% stake in Israeli catering giant Lee-Bar Events in a 350-400 million NIS deal, aiming to accelerate expansion and institutional growth.
Private equity firm SKY has acquired a 50% joint stake in the Israeli catering and institutional food giant Lee-Bar Events, valuing the company at 350 to 400 million NIS. The transaction involves a direct investment of 150 to 200 million NIS, with a substantial portion injected straight into the company treasury to accelerate growth, enhance operational capacity, and fund future mergers and acquisitions. The remaining funds are being paid out to the controlling Yifrach family, who founded the business three decades ago as a small sandwich stand in Kiryat Gat.
Founded by Jacob and Miri Yifrach, and named after their sons Liel and Bar, Lee-Bar has evolved into a massive catering powerhouse operating out of an industrial headquarters in Kiryat Gat. The company currently employs roughly 1,500 workers, producing tens of thousands of meals daily. Its annual revenues are estimated between 300 and 400 million NIS, backed by tens of millions in net profit. Its extensive client roster features high-profile institutional and corporate names, including the IDF, the Ministry of Defense, Israel Electric Corporation, Intel, Elbit Systems, Shufersal, Tnuva, Osem, and Electra.
The catering operations represent just one pillar of the Shevet Achim Group owned by the Yifrach family, which also holds prominent hospitality and leisure assets such as the Doria, Nessia, and Hallelis event venues, the Dream Island resort in the Shfela region, a resort on the Sea of Galilee, and the SALMON shopping complex. The founders and their family will retain the remaining 50% stake and continue managing ongoing operations alongside their new financial partners.
For SKY Fund, led by partners Zvi Yochman, Nir Dagan, and Kobi Shalom, the deal marks a strategic entry into the institutional catering sector. Managing over $800 million with backing from major institutional investors like Harel, Phoenix, Migdal, and Clal, SKY is currently raising its fifth fund with a target of $500 million. Alongside recent investments in A.L. Electronics and Dakarin, the private equity firm is also in advanced talks to sell its 42.5% stake in Apple product importer Icon Group to buyers including Cellcom.
