Elco Ltd.

Elco Ltd. is an Israeli international holding company headquartered in Tel Aviv. Founded in 1949 by Alexander Salkind, the business began as an electromechanical manufacturer and became closely associated with Israel’s industrial development through the production of power transformers, electricity meters and other electrical equipment. Over time, Elco evolved from a manufacturing company into a diversified group built around operating subsidiaries and acquisitions. The company’s early industrial activities included transformer production for the Israel Electric Corporation, exports of electromechanical products, electricity-meter manufacturing through Elcomet, electrical and electromechanical contracting, control systems, and fire-detection equipment. Its manufacturing base and technical capabilities provided the foundation for later expansion into large-scale infrastructure, building systems, consumer appliances and services. Elco’s securities were listed on the Tel Aviv Stock Exchange in 1963. Management passed from founder Alexander Salkind to his son Gershon Salkind, who joined the company in the 1950s and assumed leadership in the early 1970s. Under Gershon, mergers and acquisitions became a central growth method. The group acquired the competing Katzenstein Adler business in 1989, reorganized itself as a holding company, and purchased Electra from Clal Industries in 1991. Electra subsequently became the group’s principal platform for construction, infrastructure, electromechanical systems, facilities management, real estate development and transportation. Elco also expanded beyond industrial contracting. Electra Real Estate developed investment activities in income-producing property and later private-capital funds focused largely on housing in the American Southeast. Through Electra Consumer Products, the group entered air conditioning, household appliances, retail, food retail, sports and leisure, and franchised convenience stores. Its portfolio has included the Israeli Golan Telecom mobile operator, the Yeinot Bitan and Mega supermarket operations, Columbia Sportswear retail activities in Israel, and the 7-Eleven franchise in Israel. Supergas added liquefied petroleum gas, natural gas infrastructure and energy services, while later investments broadened the group’s exposure to renewable energy. A notable international transaction was Elco’s 2002 acquisition of the French appliance conglomerate Brandt. The combined Elco-Brandt business became a significant white-goods manufacturer, producing and marketing ovens, cookers, washing machines, dryers, refrigerators and freezers. Elco sold the business in 2005. In 2008, it sold its transformer operations to Switzerland’s Von Roll, marking a further shift away from direct component manufacturing toward a holding-company model. The corporate name changed from Elco Holdings Ltd. to Elco Ltd. in February 2014. Asset sales in 2016, including the former Ramat HaSharon manufacturing-site land and selected real-estate holdings, helped eliminate group debt and created capacity for another phase of acquisitions. After Gershon Salkind died in 2017, his sons Daniel and Michael became controlling shareholders and were appointed co-chief executive officers. By 2021, Elco’s subsidiaries operated in 17 countries and employed more than 21,000 people. The group maintained Israeli manufacturing activity in air-conditioning units and electromechanical equipment while also operating businesses in construction, infrastructure, consumer goods, retail, energy, real estate and public transportation. Elco has pursued sustainability initiatives through environmental, social and governance reporting, appliance-recycling plans, solar-energy investments and community programs including the Gershon Salkind Scholarship Fund. The company is traded on the Tel Aviv Stock Exchange and has been included in the TA-90 index.

Elco’s roots predate its formal incorporation. Founder Alexander Salkind moved with his family from Germany to Mandatory Palestine in 1933. Before relocating, he had operated factories in Germany and England that produced radio parts. The family had a broader industrial background: Alexander’s father was involved in Russian factories manufacturing steam engines. Alexander founded Elco in 1949 together with J. Spielberger and Discount Investments. The new business was established as an electromechanical factory in Ramat Gan. One of its early strategic achievements was becoming the sole supplier of power transformers to the Israel Electric Corporation. Elco also exported its own equipment, giving the young company an international dimension in addition to its role in Israel’s domestic infrastructure. Alexander’s son Gershon Salkind joined the business during the early 1950s. After studying at the Herzliya Gymnasium in Tel Aviv and the Swiss Federal Institute of Technology in Zurich, Gershon eventually took over management in the early 1970s. During this period, Elco expanded its technical base. It opened a new manufacturing plant in Ramat HaSharon, established an electricity-meter factory through Elcomet in Safed, and created Elco Contracting and Services in 1973 to install electrical and electromechanical equipment. Elcontrol, a control and computer division, followed in 1975. Elco also created a fire-detection subsidiary focused on assembling and maintaining fire alarms and automatic fire-extinguishing systems. The company’s ownership was challenged in 1987 when shareholders attempted to obtain control. Gershon Salkind blocked the takeover by purchasing stakes held by Discount Investments and Danot Investment Company, increasing his ownership to approximately 80 percent. Afterward, acquisitions and mergers became a defining feature of Elco’s corporate strategy. In 1989, it purchased competitor Katzenstein Adler and began restructuring the group into a holding-company format. Elco’s most important early diversification step came in 1991, when it acquired Electra from Clal Industries. Electra extended the group into air conditioning, elevators, construction, contracting and broader electromechanical infrastructure. In the late 1990s, Elco established Electra Real Estate, initially focused on income-producing real estate in Europe and the United States. This created a second major platform alongside the industrial and contracting businesses. In 2002, Elco bought the French conglomerate Brandt. The acquisition added a substantial white-goods operation producing ovens, cookers, washing machines, dryers, refrigerators and freezers. The combined business operated for several years under the Elco-Brandt name and became one of the world’s larger appliance groups. Elco sold Brandt in June 2005, reportedly generating a profit from the transaction. In 2008, it sold its transformer manufacturing activity to Switzerland’s Von Roll Holding. The divestiture accelerated Elco’s transition from a direct manufacturer of electrical components into a diversified investment and operating group. The corporate name was changed from Elco Holdings Ltd. to Elco Ltd. in February 2014. In 2016, the company sold the land containing its former Ramat HaSharon manufacturing facility, disposed of the US residential real-estate subsidiary LAT and sold land in China. These disposals left the company debt-free for the first time and supported a renewed acquisition program. The group’s post-2016 expansion covered increasingly varied sectors. Electra Consumer Products agreed in 2017 to acquire Golan Telecom and completed the transaction in April of that year. It later sold the mobile operator to Cellcom in 2020. Elco also acquired the operations of the Globus Max cinema chain in 2017. In 2019, it purchased Granite Hacarmel, bringing Supergas, an Israeli LPG and natural-gas distributor, into the group. After Gershon Salkind’s death in September 2017, his sons Daniel and Michael became controlling shareholders and were appointed co-chief executive officers. Under their leadership, the group continued to expand Electra’s infrastructure and service activities. Electra M&E Polska undertook electromechanical work for Tesla’s Gigafactory Berlin-Brandenburg, while Electra and Bosch announced plans for an HVAC manufacturing facility in Ashkelon intended to serve international markets. Transportation became another major growth area. In January 2021, Electra acquired control of Amnon Mesilot, the owner of Afikim, and renamed the bus operation Electra-Afikim. Later that year it acquired Egged Ta’avura. These deals made the group one of Israel’s leading bus operators. Electra and its long-time partner OTIS also delivered the escalator installation at Jerusalem–Yitzhak Navon railway station, which Elevator World recognized as a 2021 Project of the Year in the new-construction escalator category. Electra Consumer Products continued its retail expansion in 2021 through the acquisition of Yeinot Bitan, including the Mega store network, and through a long-term agreement to operate 7-Eleven stores in Israel. The subsidiary also moved into circular-economy and renewable-energy activities, announcing an appliance-recycling facility and solar-equipment relationships involving SolarEdge and SunPower-related operations. Elco additionally held a stake in IDB Investments and expanded Supergas-related exposure to renewable energy. By 2021, Elco’s subsidiaries operated across 17 countries and employed more than 21,000 people. The group’s portfolio included Electra, Electra Consumer Products, Electra Real Estate, Supergas and other operating businesses. Its identity had therefore shifted decisively from an Israeli electromechanical manufacturer to a family-controlled, publicly traded international holding company with exposure to infrastructure, consumer markets, property, energy and transportation.

1. 2021Expansion into transportation and retail

   The group acquired Afikim and Egged Ta’avura and Electra Consumer Products acquired Yeinot Bitan and secured the 7-Eleven franchise for Israel.

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2. 2019Supergas enters the group

   Elco acquired Granite Hacarmel, which owned Supergas.

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3. 2017Second-generation family leadership begins

   Daniel and Michael Salkind became controlling shareholders and co-chief executive officers after Gershon Salkind’s death.

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4. 2014Name changed to Elco Ltd.

   Elco Holdings Ltd. adopted the name Elco Ltd.

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5. 2008Transformer operations divested

   Elco sold its transformer-manufacturing activities to Von Roll Holding.

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6. 2002Brandt acquisition

   Elco acquired the French appliance conglomerate Brandt.

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7. 1991Electra joins the group

   Elco acquired Electra, expanding into construction, air conditioning, elevators and infrastructure.

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8. 1989Acquisition of Katzenstein Adler

   Elco acquired a competitor and began reorganizing as a holding company.

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9. 1973Elco Contracting and Services established

   The new subsidiary began installing electrical and electromechanical equipment.

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10. 1963Shares listed on the Tel Aviv Stock Exchange

    Elco’s securities were admitted to trading on the Tel Aviv Stock Exchange.

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11. 1949Elco is founded

    Alexander Salkind founded Elco with J. Spielberger and Discount Investments as an electromechanical manufacturing company in Ramat Gan.

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A diversified Israeli holding group that combines industrial and infrastructure capabilities with consumer products, retail, energy, real estate and transportation businesses. Elco’s portfolio is primarily organized through operating subsidiaries rather than a single consumer-facing product line.

• ElectraConstruction and electromechanical infrastructure1991

  Electra is Elco’s principal infrastructure and services platform. Its activities include construction, electromechanical systems, air conditioning, elevators, facilities management, infrastructure projects and real-estate development. The business operates in Israel and international markets, including the United States and Europe, and has undertaken large public-transport, industrial and building-services projects.

• Electra Consumer ProductsConsumer products and retail

  Electra Consumer Products imports, markets, distributes and retails air conditioners, household appliances and other electrical consumer goods. Its portfolio also includes food retail through Yeinot Bitan and Mega operations, sports and leisure retail, Columbia Sportswear activities in Israel, and the 7-Eleven franchise. The subsidiary has also pursued appliance recycling and residential solar-equipment distribution.

• Electra Real EstateReal-estate investment

  Electra Real Estate manages private-capital funds and related real-estate investment activities. Its principal focus has included the acquisition, management and rental of residential properties in the American Southeast through Electra America, alongside debt and hotel investment strategies in selected markets.

• Supergas EnergyGas distribution and energy infrastructure

  Supergas Energy distributes LPG and natural gas in Israel and develops related infrastructure, including natural-gas networks, power-generation facilities and cogeneration projects. Elco has also used the platform to pursue renewable-energy investments, including solar-generation development in Israel and North America.

• Electra-AfikimPublic transportation2021

  Electra-Afikim is the rebranded bus-operating business acquired through Electra’s purchase of control of Amnon Mesilot, the owner of Afikim. The operator serves scheduled bus routes in Israel and became part of Elco’s broader transportation portfolio alongside Egged Ta’avura.

• 2021Expand into public transportationM&A

  Elco sought additional infrastructure and service businesses with recurring operational activity.

  What changed. Electra acquired control of Amnon Mesilot, owner of Afikim, and later acquired Egged Ta’avura.

  Aftermath. The transactions made Elco one of Israel’s leading bus operators.

  Egged Ta’avura acquisition price. ILS 200 million (2021)

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• 2019Acquire Granite HacarmelM&A

  Elco wanted to expand its energy and utility exposure.

  What changed. Elco acquired Granite Hacarmel, owner of Supergas.

  Aftermath. Supergas became the group’s platform for LPG, natural-gas distribution and related energy infrastructure.

  Acquisition price. ILS 770 million (2019)

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• 2017Acquire Golan TelecomM&A

  Electra Consumer Products sought to broaden its consumer-services portfolio into mobile telecommunications.

  What changed. It agreed to acquire Golan Telecom and completed the transaction in April 2017.

  Aftermath. The operator was later sold to Cellcom in 2020.

  Acquisition price. ILS 350 million (2017)

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• 2008Exit transformer manufacturingStrategy

  Elco was moving from direct industrial production toward a diversified holding-company structure.

  What changed. The group sold its transformer-manufacturing activity to Von Roll Holding.

  Aftermath. The sale reduced Elco’s direct exposure to electrical-component manufacturing.

  Sale consideration. ILS 290 million (2008)

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• 2002Acquire BrandtM&A

  Elco sought to expand its consumer-appliance activities internationally.

  What changed. Elco acquired the French appliance group Brandt.

  Aftermath. The Elco-Brandt combination became a substantial white-goods business before being sold in 2005.

  Acquisition price. €250 million acquisition consideration (2002)

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• 1989Reorganize Elco as a holding companyStrategy

  Elco was expanding beyond its original electromechanical manufacturing base.

  What changed. The company acquired Katzenstein Adler and began restructuring the group around a holding-company model.

  Aftermath. The reorganization provided a structure for later diversification into infrastructure, consumer products, real estate and energy.

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• 1987Defend family control and make acquisitions central to strategyStrategy

  Shareholders attempted to take control of Elco during a period when the Salkind family was consolidating its position.

  What changed. Gershon Salkind acquired stakes held by Discount Investments and Danot Investment Company, increasing his ownership to approximately 80 percent.

  Aftermath. The episode strengthened family control and was followed by a more acquisition-led corporate strategy.

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• 2021Electra acquires control of Afikim

  Electra acquired control of the Israeli bus operator Amnon Mesilot, owner of Afikim, and rebranded the operator Electra-Afikim.

  M&A
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• 2021Electra acquires Egged Ta’avura

  The acquisition expanded Elco’s public-transportation activities and made it one of Israel’s largest bus operators.

  M&A
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• 2021Electra Consumer Products acquires Yeinot Bitan

  The transaction brought the Yeinot Bitan supermarket network, including Mega-branded stores, into the group.

  M&A
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• 2021Electra Consumer Products signs 7-Eleven franchise agreement

  Electra Consumer Products obtained a long-term franchise to develop and operate 7-Eleven convenience stores in Israel.

  M&AProduct launch
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• 2021Electra Consumer Products expands into appliance recycling

  The subsidiary partnered on plans for Israel’s first large-domestic-appliance recycling plant, targeting refrigerators, air conditioners and other heavy electronic waste.

  Other
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• 2021Electra Consumer Products enters residential solar distribution

  The group announced arrangements involving SolarEdge and SunPower-related activities to distribute and develop residential solar equipment in Israel.

  Product launch
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• 2020Electra Consumer Products sells Golan Telecom to Cellcom

  Golan Telecom was sold to Cellcom, ending Electra Consumer Products’ ownership of the mobile operator.

  M&A
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• 2020Electra and Bosch plan Israeli HVAC manufacturing facility

  Electra and Bosch announced plans for an air-conditioning and heat-pump manufacturing facility in Ashkelon, with products intended for worldwide distribution.

  Product launch
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• 2020Electra M&E Polska wins Tesla Gigafactory Berlin work

  Electra’s Polish electromechanical subsidiary agreed to perform work at Tesla’s first European vehicle-production facility.

  Other
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• 2019Elco acquires Granite Hacarmel and Supergas

  The acquisition brought the natural-gas and LPG distributor Supergas into Elco’s portfolio.

  M&A
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• 2017Electra Consumer Products agrees to acquire Golan Telecom

  The subsidiary agreed to acquire the Israeli mobile operator for ILS 350 million; the transaction was completed later that year.

  M&A
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• 2017Salkind family succession follows Gershon Salkind’s death

  After Gershon Salkind died, Daniel and Michael Salkind became controlling shareholders and co-chief executive officers.

  Leadership change
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• 2017Elco acquires Globus Max cinema operations

  Elco acquired the operations of the Globus Max cinema chain after competing in an auction process.

  M&A
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• 2014Corporate name changed to Elco Ltd.

  The company changed its name from Elco Holdings Ltd. to Elco Ltd.

  Other
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• 2008Transformer business sold to Von Roll

  Elco divested its transformer manufacturing operations to the Swiss industrial group Von Roll.

  M&A
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• 2005Elco sells Brandt

  Elco sold its French appliance business after several years of ownership.

  M&A
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• 2002Elco acquires Brandt

  Elco acquired the French white-goods group, creating the Elco-Brandt appliance business.

  M&A
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• 1991Elco acquires Electra from Clal Industries

  The acquisition expanded Elco into construction, infrastructure, air conditioning, elevators and electromechanical contracting.

  M&A
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1. Elco Ltd.