FIMI negotiating Oxygen and Argon Works acquisition

FIMI's Ishay Davidi
FIMI's Ishay Davidi

Oxygen and Argon Works is Israel's largest manufacturer of industrial gases.

Even before the ink dried on last week's agreement for its acquisition of a controlling interest in Hadera Paper Ltd. (TASE: AIP; Pink Sheets: HAIPF), sources inform "Globes" that private equity fund FIMI Opportunity Funds, led by Ishay Davidi, is conducting negotiations for the acquisition of a 51% controlling interest in Oxygen and Argon Works for NIS 180 million. No response from FIMI to the report was available.

Ownership of Oxygen and Argon Works is currently divided among over 10 shareholders, the second and third generation of the company founders. In addition to an exit from half of their shares, the sellers hope to benefit in the deal from FIMI's proven ability to enhance the value of the companies it controls, and from a dominant shareholder whose presence will prevent potential disputes among the many shareholders in the future.

Oxygen and Argon Works is Israel's largest manufacturer of industrial gases. The company's main competitor is Maxima Air Separation Center Ltd. (TASE: MAXM-M), controlled by George Horesh. Maxima's market cap is NIS 233 million, substantially lower than the value at which FIMI is attempting to acquire Oxygen and Argon works.

Oxygen and Argon Works has four production plants, located in Caesarea, Migdal HaEmek, and Kiryat Gat, where the company has two plants. The company also operates two plants, in Caesarea and Migdal HaEmek, for compressing gas in cylinders, and a distribution site in Jerusalem. The company has a total of 120 employees in its plants.

Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

FIMI's Ishay Davidi
FIMI's Ishay Davidi
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