Leumi and Discount consider buying into one of Israel's largest advertising groups
The proposed investment in Adler Chomski would give the banks' investment arms a combined 30% stake and provide the group with capital for expansion. The transaction would also allow some existing shareholders to realize part of their holdings while leaving Chomski in control.
Leumi Partners and Discount Capital, the investment arms of Bank Leumi and Israel Discount Bank, respectively, are considering a joint investment in Adler Chomski Group, one of Israel's leading advertising groups, at a valuation of approximately NIS 500 million. Under the structure being examined, each investment arm would acquire a 15% stake, giving them a combined 30% holding. Eyal Chomski would retain control. Leumi Partners is headed by CEO Viktor Vakrat, while Michal Kissos Hertzog leads Discount Capital.
Calcalist has learned that the proposed deal would combine a capital injection into the group with the purchase of shares from existing shareholders, including Chomski, minority shareholders and executives. This structure would provide the company with capital to finance further growth while allowing existing shareholders to sell part of their holdings. The total investment and the breakdown between the capital injection and payments to existing shareholders have not been disclosed.
Before the proposed transaction, Chomski held approximately 70% of the group's shares, with the remainder owned by executives and partners in its subsidiaries. If the deal proceeds under the structure currently being considered, his stake would fall to around 50%, while executives and subsidiary partners would see their combined holdings diluted to approximately 20%.
The proposed investment also raises an unusual question about the relationship between bank ownership and advertising budgets. Discount is a client of Adler Chomski, while Leumi's advertising account is handled by McCann Tel Aviv, Israel's largest advertising agency, and is expected to remain there. McCann might have been a natural candidate for a Leumi investment, but it is wholly owned by the American Omnicom Group, which does not bring in local partners.
Adler Chomski, by contrast, is one of the few major Israeli advertising groups that remains under domestic ownership, making it a potential target for financial institutions looking to enter the sector. The proposed deal would therefore create an unusual situation in which Leumi becomes a shareholder in an advertising group that competes with the agency managing its own advertising account.
Founded in 1996 by Reuven Adler and Eyal Chomski, the group acquired the Warschawski advertising agency in 1998. Over the past three decades, it has expanded from an advertising agency into a group of multiple subsidiaries. It employs approximately 400 people, and its major clients include Discount Group, Bezeq, Colmobil, Mifal HaPayis, The Phoenix, Clal Insurance and Electra.
Israel's advertising market was projected to reach approximately NIS 4.9 billion in 2025, up from about NIS 4.5 billion in 2021, representing average annual growth of around 2%. Over the same period, digital advertising grew by approximately 8% annually to reach about NIS 2.7 billion, while advertising through traditional channels declined.
For investors, Adler Chomski offers a diversified client base, experienced management and long-standing relationships with media suppliers. Its position as Israel's second-largest advertising group also gives it economies of scale and the ability to combine services for major advertisers. In a market where marketing is spread across numerous channels, the ability to integrate planning, content, media and data can provide a competitive advantage.
Keeping managers as shareholders is another important element of the proposed deal. For the investors, an equity partnership with the group's leaders could help retain the experience and client relationships built over the years while aligning key executives' financial interests with the company's performance.
Beyond Adler Chomski, the proposed investment could signal the beginning of a broader wave of financial investment in advertising, a sector that has so far attracted relatively few institutional investors. A similar shift has taken place in the restaurant and food service industries, which were long considered high-risk and unattractive to institutional capital but have increasingly become investment targets.
Leumi Partners and Mor, for example, have invested in the Nono-Mimi Group, while Leumi Partners has also invested in the Landora Group, which operates Japanika. Green Lantern Capital is advancing an investment in the Kisu restaurant group, while Poalim Equity, Harel Insurance and Harel Wiesel jointly acquired a 49% stake in the operations of the Yarzin Sela Group.
