Ginegar Plastic Products, which produces and markets polyethylene sheets and nets for a variety of uses in agriculture and industry, reported on Tuesday that it had signed and completed an agreement to acquire shares constituting 60% of the issued capital of Flextech for €6.96 million. Ginegar paid for the acquisition by taking a long-term bank loan. The agreement includes call and put options enabling Ginegar to acquire the remaining shares in Flextech within five years.
Flextech is a private company founded in Italy in 2011. It develops, produces, and sells plastic films, mainly in the industrial market. The films made by Flextech are sold to customers in the wind energy industry, space industry, auto manufacturing plants, ship-building industry, underground pump repair companies, packaging solutions companies, etc. Flextech also produces films that retard flames and radiation used in construction, films for agriculture, and plastic sacks using welding technology, mostly for packing.
Flextech operates five production lines located at four different sites, and currently has 33 full-time employees. The company's revenue totaled €19.2 million in 2016. Half of its revenue was from customers in Italy, and the other half from customers in various European countries. Flextech's EBITDA totaled €3.3 million in 2016, and its after-tax net profit was €1.9 million.
Ginegar chairman Samuel Vlodinger said, "Acquiring Flextech corresponds to the company's strategy of finding opportunities that will increase its production capacity close to the target markets in order to consolidate our status in the international markets, such as setting up a production line in India through a subcontractor, which is scheduled to begin its commercial late this year. This strategy is enabling the company to continue growing while maintaining the optimal size of its production activity in Israel."
Published by Globes [online], Israel Business News - www.globes-online.com - on June 1, 2017
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