The IKEA Israel franchise is worth an estimated $25 million.
The Blue Square Consumer Cooperative Society (Co Op) appointed committee will discuss the tender for the sale of the IKEA franchise for Israel next week. The value of the franchise has been estimated at $25 million. IKEA Israel has only one outlet in Israel, a building covering 12,000 sq.m.
Preparations for the sale began after Alon-Dor and Matthew Bronfman won the tender for Blue Square Israel (NYSE: BSI; TASE:BSI) with a NIS 1.33 billion bid.
Managed by CEO Gil Unger, IKEA Israel has 400 full-time employees and estimated annual sales of NIS 250 million. Co Op owns 75% of the franchise, after taking it over from its Blue Square Israel subsidiary at a NIS 12 million company value two years ago. IKEA International sold the remaining 25% a year ago to Canadian-Jewish businessman Albert Gnat.
Published by Globes [online] - www.globes.co.il - on April 10, 2003