MIRA
INFORM REPORT
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Report Date : |
01.08.2007 |
IDENTIFICATION DETAILS
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Name : |
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Registered Office : |
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Country : |
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Date of Incorporation : |
1945 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Retail chain, importers,
marketers and retailers of do-it-yourself products, including: indoor and
outdoor furniture, house ware and sanitary ware and plumbing, tools, paints,
gardening and camping products, electrical and building materials, electrical
appliances and lighting fixtures, household textiles ("Home Line"),
kitchens and car accessories. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
€3,800,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
Correct Name
Old Industrial Zone
RISHON
Telephone 972
3 968 78 00
Fax 972
3 956 11 29; 969 27 76
HISTORY
Originally incorporated
in 1945, under the name BILU CHOCOLATE AND CANDY FACTORY LTD., which was taken
over by the subject company, incorporated as a private limited company as per
file No. 51-110548-8 on the 21.2.1986, under the name BILU CHOCOLATE AND FOOD
PROD
Converted into a
public limited company and registered as such as per file No. 52-003848-0 on
the 4.1.1993.
At a later date
published a prospectus offering shares to the public through the Tel Aviv Stock
Exchange.
On the 11.12.1995 name
was changed to BILU ENTERPRISES (H.C.) LTD., and on the 2.12.2001 name changed
to the present one.
Up until 1998
subject operated as a chocolate and sweet manufacturer. After the ownership
structure changed, when businessman Eliezer Fishman gained control of subject
in 1999 paying US$ 22 million, subject became a holding company and parent to
HOME CENTERS (DIY) LTD. (registration No. 52-004252-4), in which it reached
full ownership in December 2000 after acquiring 13.5% of the shares from the
public, in consideration of NIS 9 million (thus the company was de-listed from
trade on Tel Aviv and Nasdaq Stock Exchange in December 2000).
As of the
1.1.2001, all the activities of HOME CENTERS (DIY) LTD. (registration no.
52-004252-4), which has been active since 1992, were transferred and merged
into subject, and the company was liquidated.
Following a
successful tender offer by Eliezer Fishman in October 2001, he acquired almost
all subject’s remaining shares from the public, in consideration of NIS 14.2 million,
reaching 99.9% of the shares, with intention to purchase the remaining shares
in a constrained manner. Consequently, subject was de-listed from trade on Tel
Aviv Stock Exchange on the 11.11.2001.
On 12.2.2003, HOME
CENTERS (DIY) LTD. and HANDYMAN - DO IT YOURSELF LTD. were merged into subject.
SHARE CAPITAL
Authorized share
capital
SHAREHOLDERS
Subject is fully
owned by Eliezer Fishman and his family, part of the FISHMAN Group. All shares
are held via trustee POALIM TRUST SERVICES LTD.
DIRECTORS
1. Aharon Meidan, Chairman,
2. Mrs. Anat Menifaz-Fishman,
3. Ms. Ronit Fishman-Ofir,
4. Eyal Fishman,
5. Eliezer Fishman (the above 3 are his
children),
6. Nir Kaplon.
GENERAL MANAGER
David Bikovsky.
BUSINESS
Retail chain,
importers, marketers and retailers of do-it-yourself products, selling over
40,000 items, including: indoor and outdoor furniture, house ware and sanitary
ware and plumbing, tools, paints, gardening and camping products, electrical
and building materials, electrical appliances and lighting fixtures, household
textiles ("Home Line"), kitchens and car accessories.
Sales are mostly
to privates (80%) and to the institutional sector.
Subject has
partnership with several companies which maintain Point of Sales in part of the
branches, among them: CARMEL CARPETS, SODA CLUB, FISHMAN CELLULAR.
Among suppliers:
NISKO, BUILDING & FENCING MATERIALS, BANDA MAGNETIC, CAMEL GRINDING WHEEL WORKS SARID, BRIMAG DIGITAL AGE, PROFILON TRADE, KETER
PLASTIC, AFIK - ILAN EFRAIM, EL-GAL ACRYLIC INDUSTRIES, JAEGAR SHLOMO, OLAM HABAIT, NIMROD INDUSTRIES, HAGARIN, DELKOL, RETALIX, and many others.
Operating from
headquarters in 7 Tulipman Street (Power Center 2000), Old Industrial Zone,
Rishon Le-Zion (on a very large area of thousands sq. meters, rented from the
FISHMAN Group affiliate), from a logistics center in Ramle, and from 38 branches
nationwide on total area of over 80,000 sq. meters.
Also operate
branch, through subsidiary, in
MEANS
Financial data not
forthcoming. Subject's financial data was available while it was traded on the
stock exchange until the beginning of 2000s. Subject's debt stood on
Subject's
Chairman, Eyal Fishman, said in an interview that the debt decreased
significantly in recent period.
According to reports from 2005 and
Annual advertising
budget: US$ 4 million.
There
ANNUAL SALES
Consolidated 1999
sales were
Consolidated 2000 sales were
Consolidated first 3 quarters of 2001 sales were
Later sales
figures were not disclosed, however consolidated annual sales during 2002 –
2004 were estimated to be
2006 sales
reported to be around
OTHER COMPANIES
Subject has a foreign subsidiary in
HANDYAN – DO IT YOURSELF LTD.
In the retail sector, apart from subject's
chain, Eliezer and his son Eyal Fishman, control the following retail chain
stores:
"MEGA
SPORT" (MEGA SPORTING EQUIPMENT (1996) LTD. and OMINI SPORT MARKETING
LTD.) - sporting and apparel goods,
"TOYS ‘R’
”BEITILI / I. D. DESIGN”
(E.F. DESIGNS - LIMITED PARTNERSHIP) - furniture and household goods
(partnership of the Fishman and Eitani families),
"CELIO"
(FISHMAN CHAINS LTD.), men’s fashion wear chain,
BEST BUY MARKETING
NETWORKS LTD. ("Best Buy" and "Big Box" stores), domestic
electrical appliances.
Subject is part of the FISHMAN GROUP, controlled by Eliezer Fishman, who
fully or partially holds a long list of companies in practically an array of
industrial and commercial sectors in the local market, as well as broad operations
abroad. Holdings include finance and investments (e.g. JERUSALEM ECONOMIC
CORPORATION LTD., real estate and contracting (e.g. DARBAN INVESTMENTS LTD. and
MIVNEY TA’ASIYA LTD.), media (e.g. 24% in YEDIOTH AHRNOTH, Israel’s most
popular daily, 66% in GLOBES, Israel’s economic daily, some 20% in HOT CABLE TV
SYSTEMS LTD.), communications, Internet,
textile (OFFIS TEXTILE LTD.), tires (ALLIANCE TIRE CO. LTD.), food
industry, as well as in many other areas.
BANKERS
Bank Hapoalim
Ltd., Central Branch (No. 600), Tel Aviv,
Bank Leumi
LeIsrael Ltd., Central Branch (No. 800), Tel Aviv,
Israel Discount
Bank Ltd.,
CHARACTER AND
REPUTATION
In May 2006, it
was reported that Eliezer Fishman, who controls subject (among many other
companies), lost (directly and through his companies) some
On 31.5.2006, subject closed its short position at a loss of US$
11,178,000.
Mr. Fishman
announced that he will cover all losses to subject and to other public
companies in his group out of his own pocket.
In January 2007
American CAR FRESHNER, producers of aroma spreading items for vehicles, filed a
lawsuit against subject to the Tel Aviv District Court for violating trade
marks (c/a 1066/07).
Apart from that,
nothing unfavorable learned.
Eliezer Fishman is
one of
We tried to speak with subject's officials, however they were too busy to
take our calls. We left messages, so far un-answered. In the past recent times,
they refused to disclose any details.
Subject is the
leading retail DIY chain store in
In April 2000
In December 2000 subject announced it will acquire the activities of
"BUILDERS”, a retailer of building products, for
In February 2001,
In June 2002, subject signed a cooperation agreement with NEWPAN,
importers of small electrical domestic appliances by Toshiba, De Longi,
Magimix, etc.
In November 2002, it was reported that subject signed a know-how
agreement with B&Q of the
Also in November 2002, it was reported that the FISHMAN Group is
considering merging all administrative activities of subject and BEST BUY,
their electrical products retail chain (49%). In July 2003 subject acquired the
remaining 51% from the Shtrauchler family, and BEST BUY's administrative
activities were merged into subject.
In December 2002, it was reported that subject invested
In March 2005, it was reported that subject will open pet departments in
its stores.
In June 2005 subject inaugurated a new logistics center on a built area
of 10,000 sq. meters (on a plot of 18,000 sq. meters) in Ramle, with investment
of
In July 2005 it was published that subject is looking for a strategic
partner that will invest in subject, in order to finance projected expansion
internationally. According to reports, the FISHMAN Group negotiates the sell of
25% in subject according to a company value of US$ 120 million.
Subject already opened stores in
In June 2006 it
was published that subject's owner, Eliezer Fishman, is negotiating with the
MARKSTONE Fund to sell subject in consideration of US$ 100 million.
In January 2006 it
was published that CLASS-OR, the concessionaire that operated the lighting
department in subject's stores, entered financial troubles and a freezing
procedure order was issued against them by the Court. CLASS-OR operated in some
34 branches and paid subject fees of around 20% of their turnover. In May
subject acquired their stock in value of
In March 2006, it
was reported that subject has changed its purchasing strategy, to working
directly with foreign suppliers and manufacturers. That also led to expansion
of new products and lines. Import of home textile and household products increased
considerably from
In parallel,
subject stretched its home design line, under the brand "Home
Collection".
According to
estimations, the local household products market volume reaches
In June 2006
subject invested
Advertising agency
is ADLER HOMSKI & WARSHAVSKY GREY.
In October 2006,
CARMEL CARPETS, local veteran importers and vendors of carpets, opened 12 points
of sale ("store within store") in subject's branches, replacing a
previous franchise.
SUMMARY
Good for trade
engagement.
Maximum unsecured
credit recommended €3,800,000.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)