US corporation Celanese is in advanced talks with Israeli nylon fiber producer Nilit, controlled by Michael Levi, for the acquisition of its plastics operations. The deal would be worth an estimated NIS 900 million ($233 million). Celanese recently began due diligence of the company's Plastics Division.
Nilit's plastics operations are overseas, while most of its nylon fiber operations are in Israel, and will not be sold.
This is expected to be a cash deal. Levi has an 80% stake in the company while Bank Leumi (TASE: LUMI) has had a 20% stake, since it acquired the Markstone Capital Partners Group LLC stake in Nilit ten years ago.
Last summer, "Globes" reported that Zion Ginat had resigned as Nilit CEO. In a memo to the company's employees, Levi said that he would serve as the company's CEO himself and work closely with the company's management team.
At the time, Nilit declined to reveal the circumstances of Ginat's resignation, but industry sources said that it followed the decision of the company's owner and chairman, Levi. Estimates are that Ginat will also enjoy profits from the expected sale of plastic operations to Celanese.
While most of Nilit's textiles production is in Migdal Haemek, it has production lines worldwide, including in the US, China and Germany. It exports produce to 70 countries, and has1,600 employees in Israel and abroad.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2016
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