SKY, Kedma in talks to buy S.AL for NIS 275m

S. AL Photo: PR
S. AL Photo: PR

Apax Partners and another party are also interested in acquiring the Holon-based company.

Local private equity funds SKY Fund and Kedma Capital are negotiating to acquire control of S.AL Group, a leading marketer of construction and infrastructure equipment and products. Apax Partners and another party are also interested in investing in S.AL. Sources inform "Globes" that the company value under discussion in the negotiations is NIS 250-300 million. According to the BDI business information website, the current shareholders in S.AL are Nir Alkalay and Sharon Weissman (35% each) and Meir Dahan (30%). The investment banker for the deal is Bank Leumi (TASE: LUMI) subsidiary Leumi Partners Ltd. SKY and Kedma have a record of successful investments in local industry. The leading managing partners in the two companies are Zvi Yochman and Nir Dagan (SKY) and Gilead Halevy, Gilad Shavit, and Uri Einan (Kedma). Apax Israel is managed by Zehavit Cohen.

S.AL was founded in 1974. Through its subsidiaries, the group supplies a variety of plumbing products, sewage and drainage systems, taps and valves, energy systems, heating equipment, firefighting equipment, and swimming pool equipment. According to the company website, its main claim to fame is its ability to supply its customers with complete solutions in these areas, while working hand-in-hand with leading global suppliers and manufacturers. According to BDI S.AL's sales are stable, with NIS 485 million in revenue in 2014 and NIS 515 million in 2015.

The S.AL group, which has 290 employees, mainly represents overseas manufacturers and also sells complete baskets of products in its diverse fields of business pertaining to construction of large pumping stations for sewage, wastewater, and water treatment. The company's warehouses cover an area of 50,000 sq.m. The group's main warehouse is in Holon, while it also operates branches constituting separate companies under its control throughout Israel.

S.AL is the exclusive representative in Israel of 50 manufacturers from Europe, the US, and the Far East, while also marketing products made locally. The company's customers include plumbing, infrastructure, air-conditioning, and firefighting contractors; municipalities; local councils; and the Ministry of Finance and other government ministries.

Published by Globes [online], Israel Business News - www.globes-online.com - on February 27, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

S. AL Photo: PR
S. AL Photo: PR
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