Plastics compounds co Kafrit Industries in US acquisition

Kafrit Industries factory Kfar Aaza  photo: PR

Kafrit Industries will pay around $36 million for the activity and assets of a company in the US.

Kafrit Industries Ltd. (TASE:KAFR), controlled by Kibbutz Kfar Aza, notified the Tel Aviv Stock Exchange this morning that it had signed an amended memorandum of understanding for the acquisition of a US company that deals in additives to concentrates in the plastics industry for $36 million.

The final acquisition price is subject to a due diligence examination and adjustments in accordance with the US company's financials due to be completed by the end of June. The deal is also subject to completion of the negotiations between the parties and the signing of a detailed agreement, as well as to various preconditions.

Kafrit will buy the assets of the US company, including its stock and fixed assets, its plant (including land), customers, and intellectual property. Assuming that the deal is completed, Kafrit will enter into a consultancy agreement with the US company's owners.

Kafrit's share price responded to the announcement with a 5% drop, making it a 14% decline in the past year. The company has a market cap of some NIS 394 million.

Kafrit, which was founded in 1993, produces masterbatches (concentrated pigments) and compounds for the plastic industry. Its largest shareholders, besides Kibbut Kfar Aza (58%) are Yelin Lapidot and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5).

Kafrit's production sites are located in Israel, Europe, China, and North America, giving it proximity to its customers and flexibility. The company's revenue rose 2.8% in 2017 to NIS 776 million, but a rise in expenses led to a 35% decline in net profit in comparison with 20916, to NIS 27 million.

Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Kafrit Industries factory Kfar Aaza  photo: PR
Kafrit Industries factory Kfar Aaza photo: PR
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018