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Jared Kushner’s Affinity Partners has completed a deal to acquire a 15% stake in Shlomo Group’s auto and credit company for $110 million. The investment is aimed at expanding the group’s automotive and financial operations in Israel to countries in the Middle East and North Africa.
The deal was completed in the midst of the war in Gaza and the current complex economic and geopolitical situation in Israel and the Middle East. The consideration for the transaction reflects the market capitalization of the automotive and credit business of NIS 2.7 billion (approximately $740 million). Mr. Kushner received a significant discount of $40 million from the price announced at the time the deal was signed in September, reducing the amount of activity from NIS 3.8 billion at signing to NIS 2.7 billion at closing. This means that the enterprise value will decrease by about 29% and the real market capitalization will decrease by his 12%.
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Jared Kushner (left) and Ashi Schmelzer.
(Photo: Ezra Levy)
Since its founding in 2021, Affinity Partners has researched more than 1,000 companies and invested more than $700 million of the $3 billion it has raised, primarily from Saudi Arabian wealth funds.
The parties agree that for now, the new company will hold only the shares related to Shlomo Group’s automotive division, which includes vehicle leasing, rental and sales operations, and that the funds will have an additional 12 months to collect the funds after the transaction closes. agreed to do so. It called on the Capital Markets Insurance and Savings Authority to apply for a license to hold at least 10% of Credit Pass, a private company engaged in non-bank credit business.
Under the agreement, Shlomo Group will provide Affinity Fund with a $46.75 million loan to finance the investment transaction.
Shlomo Group has a fleet of more than 78,000 vehicles in Israel, accounting for approximately 30% market share of the industry.
“We are excited to partner with the Schmelzer family through our investment in Shlomo, which continues to demonstrate the same resilience as the entire country. Affinity looks forward to more promising opportunities in Israel and the region ” Kushner said.
Asi Shmeltzer, Chairman of Shlomo Group, said: “Despite difficult times in Israel, this transaction was successful. This investment was made possible by our sincere confidence in the Group, its employees and managers, and in the Israeli economy. We look forward to delivering significant growth and profitability.”
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