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.

• 2021

  Expansion into transportation and retail

  [1]Elco Ltd.en.wikipedia.org

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

• 2019

  Supergas enters the group

  [1]Elco Ltd.en.wikipedia.org

  Elco acquired Granite Hacarmel, which owned Supergas.

• 2017

  Second-generation family leadership begins

  [1]Elco Ltd.en.wikipedia.org

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

• 2014

  Name changed to Elco Ltd.

  [1]Elco Ltd.en.wikipedia.org

  Elco Holdings Ltd. adopted the name Elco Ltd.

• 2008

  Transformer operations divested

  [1]Elco Ltd.en.wikipedia.org

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

• 2002

  Brandt acquisition

  [1]Elco Ltd.en.wikipedia.org

  Elco acquired the French appliance conglomerate Brandt.

• 1991

  Electra joins the group

  [1]Elco Ltd.en.wikipedia.org

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

• 1989

  Acquisition of Katzenstein Adler

  [1]Elco Ltd.en.wikipedia.org

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

• 1973

  Elco Contracting and Services established

  [1]Elco Ltd.en.wikipedia.org

  The new subsidiary began installing electrical and electromechanical equipment.

• 1963

  Shares listed on the Tel Aviv Stock Exchange

  [1]Elco Ltd.en.wikipedia.org

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

• 1949

  Elco is founded

  [1]Elco Ltd.en.wikipedia.org

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

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.

• Construction and electromechanical infrastructure · 1991

  Electra

  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.

• Consumer products and retail

  Electra Consumer Products

  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.

• Real-estate investment

  Electra Real Estate

  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.

• Gas distribution and energy infrastructure

  Supergas Energy

  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.

• Public transportation · 2021

  Electra-Afikim

  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.

• 2021

  Expand into public transportationM&A

  Background

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

  Action taken

  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)

  Source

• 2019

  Acquire Granite HacarmelM&A

  Background

  Elco wanted to expand its energy and utility exposure.

  Action taken

  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)

  Source

• 2017

  Acquire Golan TelecomM&A

  Background

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

  Action taken

  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)

  Source

• 2008

  Exit transformer manufacturingStrategy

  Background

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

  Action taken

  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)

  Source

• 2002

  Acquire BrandtM&A

  Background

  Elco sought to expand its consumer-appliance activities internationally.

  Action taken

  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)

  Source

• 1989

  Reorganize Elco as a holding companyStrategy

  Background

  Elco was expanding beyond its original electromechanical manufacturing base.

  Action taken

  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.

  Source

• 1987

  Defend family control and make acquisitions central to strategyStrategy

  Background

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

  Action taken

  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.

  Source

1. 1Elco Ltd.en.wikipedia.org