LA Chaim

ISRAELI IPO WATCH: STEIMATZKY, LTD.

Steimatzky, Israel’s premier specialty retailer with over 150 stores, is repositioning itself for an IPO on the Tel Aviv Exchange in Q3 or Q4 2007. Steimatzky, founded in 1925, is the nation’s lead bookselling brand and has been called the Barnes and Noble of Israel. The company is the leading importer of foreign books and periodicals in the region and also has moved into the publishing business to better meet consumer needs. Following a recent acquisition by Markstone Capital Group, the Steimatzky imprint is expanding rapidly, opening its first shop in Los Angeles . Pairing local Israeli management with global brand positioning and increased liquid capital, Elliott Broidy’s firm has set up a strategic retail strategy that will focus on improving four key elements of the book business: retail space will be made more modern and inviting, management will be retrained and recruited to increase efficiency and leadership, the IT systems of the brand will be overhauled and the Customer Service and Marketing will be repositioned. This vital restructuring aims to improve efficiency and profitability through its synergistic approach: all four areas of improvement will occur simultaneously. This is largely due to the financial resources and managerial expertise of Markstone, who specializes in extracting value from low-tech and undervalued Israeli firms. Markstone Capital’s rebranding initiative will employ local and international leadership and should have the company poised for a strong opening sometime in 2007. Connecting to the Israeli economy and touching multiple sectors is one of the keys to strengthening ties between the two locales.