Local investment funds continue to search for local targets for investment and acquisition. In the past 24 hours, two fund reported new deals amounting to hundreds of millions of shekels. In the first, the Tene Fund bought 50% of the shares in plastics company Huliot from Kibbutz Sde Nehemia for over NIS 100 million. In the second deal, the Kedman fund and Poalim Capital Markets acquired all of the shares in Iskoor for $100 million in cash (NIS 370 million).
The Tene fund, which specializes in investments in kibbutz industry, agreed to pay over NIS 70 million to Kibbutz Sde Nehemia and its members, while injecting an additional sum of over NIS 30 million in exchange for an allocation of shares. Huliot, founded in 1947, produces piping products for the construction and infrastructure industry. Huliot, the first kibbutz industry plastics company, has hitherto been fully owned by Kibbutz Sde Nehemia.
Huliot's annual sales turnover is estimated at over NIS 200 million. Its customers in Israel include S. Al Group, Mendelson S. Bar, Rafael Advanced Defense Systems Ltd., Israel Electric Corporation (IEC) (TASE: ELEC.B22), Tnuva, Motorola, Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ), Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), and others. 13% of Huliot's activity involves storage solutions for small parts in the the medical, office, and technical market.
Huliot wants to expand overseas
Huliot's main plant, located on Kibbutz Sde Nehemia, covers 15,000 square meters. Its production facilities utilize extrusion technology. Huliot has been growing by over 10% a year in recent years and is aiming to increase its exports to overseas markets.
In 2014, Huliot acquired an installation systems production plant in Slovenia in order to serve the European market. Huliot is active in 15 European countries, including Italy, Austria, Spain, Denmark, Sweden, Germany, Greece, Serbia, and Croatia. In 2015, Huliot established a plant in Gujarat, India that focuses on acoustic piping for skyscrapers in large Indian cities.
Huliot chairperson Yehuda Ben Chaim explained that the purpose of the deal was to provide the members of Kibbutz Sde Nehemia with an exit, while bolstering Huliot's array of overseas companies. Kibbutz Sde Nehemia chairperson Eilon Bacharach, who led the deal on behalf of the owners, emphasized that the sale had created conditions for ensuring Huliot's continued growth.
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2018
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