Apax Partners is in advanced talks to acquire paint company Tambour Ltd. from Azrieli Group Ltd. (TASE: AZRG). Market sources believe that the deal is on the verge of being closed.
The acquisition will be made at a value of NIS 800 million, including Tambour's debt of NIS 300 million, giving a net value of NIS 500 million. Apax will make the acquisition through a new fund that it established for investments in Israel.
The new Apax fund will total $300 million. It will invest in mid-sized and large Israeli companies that have annual turnovers larger than NIS 75 million.
Tambour is a holding of Azrieli subsidiary Granite Hacarmel Holdings Ltd. Tambour fits Apax's new investment strategy. Apax controls Tnuva Food Industries Ltd., which dominates the dairy market, and Psagot Investment House Ltd., Israel's largest investment house. In other words, Apax focuses on acquiring companies that dominate their field, and Tambour meets this criterion.
Tambour, founded in 1936, manufactures paints for walls and vehicles, printing inks, as well as construction and renovation materials. It is a strong brand and is free of managerial problems. The company is run by CEO Michael Dayan. In May 2013, Granite Hacarmel delisted the company from the Tel Aviv Stock Exchange (TASE) at a value of NIS 350 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2014
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