Ham-Let buys Norwegian co Norvalves

Ishay Davidi

The company manufactures and markets valves and fittings for the North Sea oil and gas industry.

Ham-Let (Israel-Canada) Ltd. (TASE: HAML), controlled by Ishay Davidi's FIMI Opportunity Funds, is buying Norwegian company Norvalves for 10 million krones (about $1.2 million). Ham-Let, which produces and markets piping accessories, fittings and valves to the industrial sector, reported to the stock exchange today that it had completed the acquisition of Norvalves, which specializes in the oil and gas sectors.

Ham-Let says that Norvalves has 25 years of experience in operations in Norway and the North Sea, selling and marketing valves and connectors for the oil and gas industry for subsea (deep sea drilling) and topside rigs. Ham-Let estimates that Norvalves will enable it to beef-up and expand its operations, while helping it to consolidate its presence in the North Sea.

Ham-Let's market cap totals NIS 635 million, after its share price has jumped nearly 70% in the past year. The company reported a $33 million revenue in the second quarter of 2016, a 31.6% rise from the corresponding quarter, and summarized the first quarter with a 19.6% rise in income, to $59.2 million.

The company says that the main growth has been in sales to the Far East and North America. Ham-Let managed to improve its gross and operating profit figures, compared with the corresponding quarter and the first half of 2015, and reported a $3 million net profit attributable to shareholders, a 71.6% jump from the corresponding quarter.

In the first half of 2016, the net profit attributable to shareholders was $5.5 million, compared with $3.2 million in the corresponding period. At the end of the second quarter, the company had $11.6 million in cash and cash equivalents.

This is Ham-Let's second acquisition this year, after finalizing the acquisition of the Chinese company Jiangsu Xinghe Valve for $15 million, contingent on milestones. The Chinese firm operates in the fields of process industry, and produces valves and connectors for the fields of nuclear energy, petrochemistry, oil and gas.

Ham-Let CEO Amir Widmann said, "As part of our strategy to expand our market shares we have been scouting for companies synergetic to our current operations, both in the field of process industry and in ultra-clean products. We noted that the field of oil and gas is attractive for an acquisition and Norvalves matches the criteria defined, opening the door for the North Sea territory."

Widmann added, "In 2015, Ham-Let successfully integrated the operations of the UK company Cambridge and is currently completing the integration of the Chinese company, which was successfully acquired in April."

Published by Globes [online], Israel business news - www.globes-online.com - on October 18, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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