The Tel Aviv District Court approved last week the sale of Burger King Israel’s franchise to Orgad Holdings for NIS30m (US$6.5m), following the decision of the Antitrust Commission to disqualify the bid from rival Burger Ranch.
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Orgad chairman Avi Orgad was quoted in Haaretz as saying that the acquisition of Burger King Israel’s operations “is a long term, strategic purchase with no intentions to bring in any partners into the enterprise. We plan to turn the Burger King chain into the leader in the fastfood business in Israel.”
Orgad Holdings paid NIS20.5m in cash, with the rest due over the next 4 years. The Court approved the sale after the new buyers undertook to employ at least 80% of the current staff, numbering 1200 employees, for 6 months after the sale. Orgad’s Chairman stated after the hearing that he plans “to expand the chain’s operations not downsizing it.”
