Elco Ltd.

Elco operates through holdings in companies rather than a single line of production, with its principal businesses encompassing infrastructure services, electrical appliances and retail, energy supply, and property investment.[2] Its core investment approach is to acquire controlling interests, develop expertise in defined business segments, grow businesses over the long term, and dispose of assets that have exhausted their growth potential.[5]

The company is traded on the Tel Aviv Stock Exchange.[1] Its principal publicly traded subsidiaries are Electra, Electra Consumer Products, Electra Real Estate, and Electra Power.[2] The group has evolved from a manufacturer of transformers and electricity meters into a more service-oriented business organization, while retaining activities connected to electrical equipment and energy.[2]

Elco's corporate structure combines subsidiary businesses with a small parent-company organization: in 2017, its headquarters employed approximately 10–15 people providing services such as cash management and legal advice.[6] Its acquisition strategy has included purchasing substantial stakes in companies with established brands and potential synergies with existing operations, alongside selling investments when profitable opportunities arise.[7]

Accounts differ over Elco's founder. Elco's current investor materials identify Alexander Salkind as the founder in 1949, while a 2017 Globes obituary described Gershon Salkind as the founder.[2][6] The company began by manufacturing transformers and electricity meters for the Israel Electric Corporation.[2] Gershon joined the family workshop in the early 1950s, took control in the early 1970s, and led its expansion from manufacturing into a diversified group.[2][8]

In 1987, Gershon acquired the stake of Discount Investment, then Elco's principal shareholder.[8] He completed his takeover the following year by purchasing shares from the receiver of the Danot group and also acquired control of competitor Katzenstein Adler.[8]

On June 5, 1991, Elco purchased approximately 58% of Electra's shares from Clal Industries.[3] At the time, Elco and Electra both manufactured and marketed household air conditioners and produced central air-conditioning systems.[3] The companies sought merger approval and received it on June 24, 1991.[3] The transaction formed part of an effort to diversify Elco's activities and reduce its dependence on electrical-infrastructure products.[8]

Electra was experiencing financial difficulties at the time of the acquisition, including heavy losses in consumer products.[9] The loss-making consumer-products operation was transferred to a separate company within the Elco group that became known as Electra Consumer Products.[9] By 1997, Electra itself contained nearly 20 independently functioning companies or divisions within the wider Elco organization.[9]

Elco established Electra Real Estate in the late 1990s as part of its expansion beyond Israel.[8] That business acquired more than 100 income-producing properties in Israel, Europe, the United States, and Canada.[8] The global real-estate crisis of 2007–2008 brought property write-downs and losses, prompting Elco to reorganize bank debt and sell assets to reduce liabilities.[8]

Financial pressure remained evident in 2012, when Elco had a working-capital deficit of NIS 290 million and a liquidity rating of “less than adequate.”[10] Asset disposals subsequently became an important part of its financial restructuring.[8][10] Sales included land in China for NIS 440 million, land in Ramat Hasharon for NIS 180 million, and its stake in the LAT real-estate investment trust for NIS 640 million.[8] Asset-sale proceeds and subsidiary dividends generated NIS 1.4 billion in cash flow during 2016–2017.[10]

Elco's standalone net financial debt fell from approximately NIS 1.1 billion in 2015 to NIS 101 million at the end of 2018.[10] Its standalone equity-to-assets ratio rose from 37% to 83% over the same period.[10] These parent-company figures differed from consolidated debt: the group's consolidated net debt increased from NIS 819 million at the end of 2016 to NIS 1.6 billion at the end of 2018.[10]

Gershon Salkind died in 2017 at the age of 87, having held approximately 65% of Elco.[6] His sons Michael and Daniel were already joint chief executives, having been appointed about a decade earlier.[6] In January 2018, Elco announced that their father's shares, held through the private company G. Salkind, would be divided equally between them under his will.[4] The brothers signed a shareholders' agreement establishing mechanisms for joint management.[4]

The group's acquisitions extended into telecommunications and entertainment in 2017.[10][11] Electra Consumer Products bought Golan Telecom for NIS 350 million, financed through NIS 80 million of Elco equity, a NIS 140 million bank loan, and a NIS 130 million loan from Cellcom.[11] The acquisition linked a consumer-facing mobile business with the subsidiary's nationwide retail and marketing network.[11] In 2020, the group sold Golan Telecom, an example of its practice of realizing investments when it could do so profitably.[7]

Elco also purchased cinema chain Globus Max in 2017 for NIS 144 million while it was under court protection, using an NIS 85 million bank loan and its own resources for the balance.[10] In 2018, it acquired 38.3% of meeting-room rental company Meet in Place for $7 million; a further NIS 6.8 million investment in 2019 raised its holding to 45.8%.[10] In November 2019, Elco completed the acquisition of Supergas from the Azrieli Group for NIS 817 million.[12]

In January 2025, Elco sold Electra shares for NIS 85 million following a 49% increase in Electra's share price over the preceding year.[13] In November 2026, Elco was considering selling its approximately 61% stake in Supergas Power and had engaged Phoenix Underwriting and TASC to approach potential buyers.[14] At that time, it was also working toward a Carrefour Israel public offering and had contributed approximately NIS 94 million to Electra Real Estate's NIS 200 million rights issue.[14] The proposed energy sale and retail offering remained plans rather than completed transactions.[14]

Electra's activities cover development, planning, construction, system installation, facility management, and maintenance.[15] The group's infrastructure work includes roads, railways, and bridges, alongside electrical and plumbing systems, central air conditioning, elevators, and escalators.[16] Its construction and infrastructure businesses therefore operate across both project delivery and continuing building services.[15]

Electra Consumer Products combines home appliances, electronics, and retail operations, including a partnership with Carrefour.[15] Its activities include importing, manufacturing, and marketing electrical consumer products and air conditioners, as well as operating the Shekem Electric and Mahsanei Hashmal retail chains.[16] The Carrefour partnership extended its retail activities into food.[2]

Electra Real Estate's activities include multifamily housing and commercial property.[15] Its investment businesses include United States multifamily funds and funds targeting hotels and offices in Europe and the United States.[2] In 2021, its principal focus was income-producing property in the United States.[7]

The energy business encompasses liquefied petroleum gas, natural gas, and renewable electricity.[15] Its activities have included purchasing, storing, and selling gas and electricity, while renewable-energy initiatives include investments in cogeneration and solar projects.[2][7]

Elco also holds an interest in Discount Investment Corporation, or DIC.[16] In 2021, that stake was approximately 30%, and DIC's principal holdings included Cellcom, Elron Electronic Industries, and Property and Building, which in turn controlled Gav-Yam.[16] DIC had approximately NIS 5.1 billion in revenue in 2020.[16] Its portfolio encompasses real estate, infrastructure, and technology.[15]

The subsidiary structure also includes entertainment operations.[2] In 2022, the wholly owned Dream Group Holdings, formerly Elco Media, operated cinemas.[17] The same dated portfolio description listed holdings of 48% in Electra, 60% in Electra Real Estate, 48% in Electra Consumer Products, 29.8% in Discount Investment, and 62% in Supergas Energy.[17]

The investor-page portfolio figures available in November 2026 listed stakes of 47% in infrastructure, 45% in consumer businesses, 61% in energy, 55% in real estate, and 29.8% in Discount Investment, alongside full ownership of entertainment and experiences.[2] That page identified the infrastructure holding with the TA-35 index and the consumer, real-estate, and Discount Investment holdings with the TA-90 index.[2]

Elco's investment approach combines growth in existing businesses with strategic acquisitions and selective disposals.[2][5] Under the Salkind brothers, acquisitions have generally targeted substantial stakes in businesses with leading brands and opportunities to work with existing group companies.[7] The group has also realized investments relatively soon after acquisition when it could do so profitably.[7]

The Electra group generated approximately NIS 11 billion in revenue in 2020, including approximately NIS 9.3 billion from Israel, and employed 8,984 people in Israel.[16] By that time, Elco stood at the head of the group, with most group companies held directly or indirectly through it.[16] Its entities included Electra, Electra Consumer Products, Electra Real Estate, Supergas Energy, and Dream Theater.[16]

Elco's turnover exceeded NIS 5.94 billion in 2017, when it was classified as a significant real corporation for Israeli economic-concentration regulation.[18] Michael and Daniel Salkind entered the list of concentrated entities in 2018 following the division of their father's estate and their resulting control of Elco.[18]

For the first half of 2022, Elco reported revenue of NIS 9.6 billion and net profit of approximately NIS 480 million, increases of approximately 49% and 140%, respectively.[17] Second-quarter revenue was approximately NIS 4.7 billion and net profit approximately NIS 180 million, representing increases of 36% and 75%.[17]

Annual turnover reached approximately NIS 18.8 billion in 2023, and Elco's market value was approximately NIS 2.8 billion in May 2024.[1] Its investor page separately reported NIS 15.05 billion in revenue and 23,850 employees as of September 2024.[2] These figures refer to different reporting dates and periods.[1][2]

The company's international footprint extends beyond its Israeli operations.[1] Its homepage reported significant activity in more than 15 countries and more than 23,460 employees, while its investor page described operations in more than 20 countries and a workforce exceeding 23,500.[1][2] Its About page used broader figures of 20 countries and more than 20,000 employees, and identified Daniel and Michael Salkind as co-managing directors, Avi Israeli as vice CEO, and Eli Vessely as chief financial officer.[5]

A 2021 economic-concentration assessment classified the Electra group as having high economy-wide concentration because of its scale and involvement in infrastructure and other sectors.[16] The assessment also identified limits to that position: the group was not a sole supplier in most essential-infrastructure fields it entered, and its bargaining power with regulators in those fields was considered limited.[16] These conclusions concerned the group's position in 2021 rather than a current measurement of its economic influence.[16]