Sources inform ''Globes'' that Tene Investments Ltd. has acquired 51% of medical device company < TAG Medical Products owned by Kibbutz Gaaton at a company value of NIS 75 million, subject to certain conditions. TAG Medical develops arthroscopic surgical equipment, mainly for sports medicine.
TAG Medical's products have US Food and Drug Administration (FDA) and EU CE Mark clearance. The company manufactures its products in Israel, and markets most of them abroad through distributors and strategic partners, such as Tornier SA (Nasdaq: TRNX) of France.
Tene Investments, controlled by senior managing partner Dr. Ariel Halperin, was founded in 2004, and manages $200 million. Its portfolio includes several kibbutz companies, including drip irrigation solutions manufacturer Netafim Ltd., solar water heaters manufacturer Chromagen Ltd., water analysis solutions developer BlueI Technologies Ltd., and Caesar Stone Ltd.
Tene managing partner Ran Ben-Or told "Globes", "TAG is an interesting and strong company. We acquire growing companies, not companies needing rescuing from a crisis. We see potential in TAG and we're sure that it can grow nicely, but it needs money to do this." He did not rule out acquisitions by TAG as part of its growth process following Tene's investment.
Biomedix Incubator Ltd. (TASE:BMDX) had been in talks to acquire control of TAG Medical at a company value of NIS 90 million, but the deal fell through, apparently over disagreements about management of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2011
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