Israeli pop star Omer Adam is becoming a partner in Zappa, one of Israel's leading live music venue chains. Adam, together with music company Aroma Music, formerly known as Hed Artzi, has acquired a 40.05% stake in the chain from Delek Israel. Music promoter Benny Menashe is also a partner in Aroma Music.
The deal comes just six weeks after Delek Israel increased its holdings in Zappa by acquiring the stake owned by German entertainment giant Eventim for 20 million shekels ($5.4 million). Under the new ownership arrangement, the Adam family and Aroma Music will assume responsibility for managing and developing the chain.
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Israeli pop star Omer Adam is becoming a partner in Zappa, one of Israel's leading live music venue chains
(Photo: Moshe Nachomovich)
Following the transaction, Delek Israel will retain a 40.05% stake in Zappa, while businessman Golan Einat will continue to hold the remaining 19%.
Zappa currently operates six live performance venues across Israel: Shuni in Binyamina, Mini Israel in Latrun, Tel Aviv, Haifa, Herzliya and Jerusalem.
A strategic partnership in Israel's music industry
The investment represents a strategic partnership between several major players in Israel's entertainment industry. Through Aroma Music, Menashe represents prominent Israeli artists, including Idan Amedi, Shlomi Shabat and Eden Ben Zaken.
Menashe and Yaniv Adam, Omer Adam's father, have an established working relationship in music production, artist management and investments. Their involvement is expected to play a central role in the chain's future operations and expansion.
The transaction was led on Delek Israel's behalf by CEO Yoram Eyal and Deputy CEO Keren Kopermintz. Delek Israel is controlled by Lahav L.R., Uri Mansour, Yitzhak Tshuva and Leumi Partners. The company first entered Zappa three years ago, purchasing a 10% stake from businessman Golan Einat. It subsequently increased its holdings to 81% before the latest deal.
The new partnership aims to strengthen Zappa's position as a home for Israeli musicians, encourage artists to return to performing at its venues, broaden the range of performers and open additional clubs under professional management.
Zappa club in Be'er Sheva
(Photo: Chaim Hornstein)
Delek Israel brings substantial financial resources and an extensive customer base to the partnership. The company holds a 40% stake in cable television provider HOT, which has 2 million subscribers. It also owns the Burger King restaurant chain in Israel and operates a network of gas stations with approximately 1 million members in its customer program.
'A new chapter in Zappa's history'
Delek Israel CEO Yoram Eyal welcomed the agreement, describing it as an important development for the company and Israel's entertainment industry. "We are excited to embark on this joint journey and open a new and significant chapter in Zappa's history and in Israel's entertainment industry," Eyal said.
"This is a strategic partnership based on a shared vision that connects people, content and business capabilities. Combining the experience and capabilities of the Aroma Music Group and the Adam family with the strength and synergies of Delek Israel will allow us to expand Zappa's operations, offer audiences new entertainment experiences and content, and strengthen its position as a central home for music and entertainment in Israel."
Eyal added that the investment was intended to create opportunities beyond the existing venue network. "This is the first step in a move that will create new opportunities for artists, audiences and business partners in the coming years," he said.