Erez Nahum’s new fund makes first deal with $77 million veterinary chain acquisition
The former Apax Israel executive is teaming up with Phoenix to acquire 85% of Haverim, with a $58 million capital injection to support expansion. The deal marks the first investment by Nahum’s new vehicle, which is targeting mid-sized Israeli companies.
Leox, the investment fund established by Erez Nahum after his departure from Apax Israel, has completed its first deal. Calcalist has learned that Leox and Phoenix are acquiring an 85% stake in the Haverim veterinary clinic chain from its founder, Erez Zeituni.
The transaction will involve a NIS 180 million ($58M) capital injection into the company to finance its expansion, valuing the chain at NIS 240 million ($77.4). Phoenix, which is joining as a co-investor, sees potential synergies between veterinary care and the insurance industry. Zeituni will retain a 15% stake and remain CEO, while Nahum will serve as chairman.
Haverim operates 10 clinics in Yahud, Holon, Ashdod, Ashkelon, Kiryat Ono, Kiryat Motzkin, Ra’anana and Haifa, as well as two branches in Tel Aviv, in the Kochav HaTzafon neighborhood and on King George Street in the city center.
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Erez Nahum. Left Apax and founded a fund operating in the same market segment.
(Photo: Rami Zarnegar)
Most of the chain’s revenue comes from subscription plans that function as a form of health insurance for cats and dogs. Members pay an annual fee in exchange for a range of medical tests, including ultrasounds and laboratory tests, as well as partial coverage of hospitalization, surgery, dental treatment and other services. The plans also cover vaccinations against kennel cough, deworming, emergency diagnostic tests and medication purchases. The chain also operates a boarding facility for cats with health problems that require daily care.
Alongside the investment in Haverim, Nahum is raising a new NIS 600 million ($193M) fund focused on mid-sized Israeli companies.
According to presentations Nahum has made to institutional investors, the fund plans to invest $20 million to $30 million per deal in companies valued at $100 million to $200 million. The strategy targets the mid-market segment in which Apax Israel, also known as AMI, operates.
If launched, Nahum’s fund is expected to compete with Apax, alongside other established funds and new investment vehicles being formed in the market.
Veterinary care is one of the prominent sectors in the AMI 2 fund managed by Apax Israel under Zehavit Cohen. Nahum’s entry into the sector with the Haverim deal therefore marks his first investment in a market in which his former employer is already active.
Alongside completing the transaction, Nahum has assembled the new fund’s investment committee. Dorit Salinger will chair the committee, with Nahum, Sami Babkov, a former investment manager at Harel, and Merav Levin, who worked with Babkov at Harel, also serving as members.
