Sources inform ''Globes'' that Caesar Stone Ltd., controlled by Kibbutz Sdot Yam and Tene Capital Ltd., plans to go public on Nasdaq by the end of the year. The company is in talks to buy out Caesar Stone's US partner in Caesar Stone US, which markets the company's high-quality, custom quartz surface slabs for kitchen and bathroom countertops in North America, for $30-50 million, which will enable Caesar Stone to achieve a higher company value of $400-500 million for a planned IPO on Nasdaq.
Caesar Stone currently owns 25% of Caesar Stone US, which is responsible for a third of the company's total sales.
Caesar Stone declined to comment on the report.
Caesar Stone was founded in 1987 by Kibbutz Sde Yam. 80% of the company's sales are from exports. The company has two factories, one at the kibbutz, and the other at Carmiel.
Caesar Stone CEO Yossi Shiran and chairman Yonatan Melamed, and Tene Capital chairman Ariel Landau plan to float the company by year end, although the IPO could be delayed slightly in order to complete the acquisition of the US subsidiary.
Since a Nasdaq IPO is an expensive proposition, Caesar Stone had considered an IPO on the Tel Aviv Stock Exchange (TASE), but the company value estimated by underwrites was less than the company's expectations.
Caesar Stone reportedly had a net profit of $16 million on $150 million revenue in 2009, and the company expects a net profit of $18 million on $170 million revenue in 2010, giving 12% profit growth and 13% revenue growth.
Tene Capital acquired 16% of Caesar Stone in 2006 at a company value of $40 million. Tene Capital later exercised an option to increase its stake to 27%, buying an additional 5% for $8 million, reflecting a company value of $160 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 31, 2010
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