Terminal X is targeting, for the first time, a religious audience seeking modest clothing, acquiring the modest fashion brand Sdebar in an effort to cater to and expand its customer base across different segments of Israeli society. Terminal X has signed binding agreements to purchase 51% of Sdebar’s shares, a leading fashion brand among its target audience, primarily the religious Zionist community. The deal is estimated to be worth millions of shekels.
Sdebar was founded in 2013 by entrepreneurs Ariela Avitan (38) and Adi Cohen (38), two friends who met while studying at an ulpana, a girls-only Jewish high school, in Kfar Pines. Since then, they have led the brand’s design and management, offering a range of fashion and lifestyle products for women and teenage girls in the community who do not compromise on trends despite adhering to modest dress standards.
Ariela Avitan and Adi Cohen, CEOs and designers of the Sdebar brand
(Photo: Leor Casson)
Avitan and Cohen said that when they were younger, they struggled to find suitable clothing and began sewing their own garments. The clothes attracted interest, and even before their national service, they began selling their designs at seminars for young women doing national service and at the ulpana where they studied. During their second year of national service, they began promoting their dresses on Facebook and were surprised by the strong response. Later, as sales grew, they traveled to China and began working with manufacturers there.
Today, the brand is popular among its target audience, with an up-to-date product line, an online store and five boutique shops — two in Jerusalem as well as locations in Givat Shmuel, Kfar Etzion and Petah Tikva. The brand is characterized by a boho-chic design style and includes dresses, jumpsuits, skirts, swimsuits, pants and more. Ariela Avitan and Adi Cohen will continue serving as the brand’s co-CEOs and designers.
The acquisition of Sdebar is part of Terminal X’s expansion strategy and follows previous acquisitions by the group, including Seestarz, Ainker, makeup brand Adah Lazorgan, jewelry brand Ronit Yam and Strongful.
Nir Horvitz, CEO of Terminal X, said following the deal: “We are pleased to add the Sdebar brand to the Terminal X group. The acquisition is part of the strategy to expand the group’s activities through strong lifestyle brands with a clear identity and a loyal customer base. Sdebar has established itself as Israel’s leading and trendiest modest fashion brand, with a unique, innovative and up-to-date design language. We believe that the combination of Terminal X Group’s experience, infrastructure and technology with the talent of Ariela Avitan and Adi Cohen will enable us to continue accelerating its growth and reaching new heights.”