Teddy Sagi invests NIS 40m in Alltrade

Teddy Sagi

Alltrade, which dominates Israel's electronic recycling industry, has canceled its planned TASE IPO.

The Teddy Sagi group and the Alltrade company, which provides computer services and recycles electronic waste, today announced a NIS 40 million investment agreement. Following the signing, Alltrade announced the cancelation of its planned stock exchange offering.

Alltrade began operating in 2002 in the computer services sector, and is still active in importing and selling PCs, mobile products, hardware, software, and peripheral office equipment. As part of this activity, Alltrade two years ago acquired the activity of Chayon Computers, which was in a stay of proceedings.

The company began operating in the recycling of electronic waste in 2010, and has achieved a dominant position in the sector, which accounts for most of its business. The company collects old electronic equipment and sorts it. Components suitable for reuse are renovated and sold to customers at a low price. At the same time, materials unsuitable for additional use undergo a recycling process, and are sold to industry. The company has 130 employees in its plant, consisting mostly of engineers, electricians, and technicians. Alltrade also has an electronic waste recycling plant with a maximum handling capacity of 30,000 tons a year.

Alltrade has achieved considerable growth in recent years. The company's revenue totaled NIS 50 million in the first half of 2017, 26% more than in the first half of 2016. Its first half profit was NIS 3.2 million, compared with NIS 800,000 in the corresponding period last year. Alltrade's EBITDA in the first half of 2017 amounted to NIS 5.7 million.

Alltrade recently submitted a draft prospectus for an IPO on the TASE. Following the Teddy Sagi Group's investment, the company today announced that the IPO had been called off. Alltrade expects to use the money from the investment to expand its recycling business, setting up lines for sorting plastic, producing tin, recycling batteries, and developing metal refining capabilities.

Following the investment, the Teddy Sagi group will own 35% of Alltrade's shares, Oded Reichman 55% and Ran Tshuva 10%.

Alltrade CEO Gadi Reichman said, "We are glad about signing the investment agreement, and the trust in us shown by the Teddy Sagi group. Since we have obtained the investment we wanted, we saw no need to continue the proceedings for the offering. The company is looking to the future in order to make the investments we have reported."

Published by Globes [online], Israel Business News - www.globes-online.com - on November 14, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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