TGI (formerly: Tadir-Gan), a company controlled by the Brin-DBSI Group that focuses on industrial activities in the fields of automotive, real estate and infrastructure, reports this morning that it has entered into a strategic transaction, in which it will acquire Tamash Metal and Electric Industries. Will become a shareholder of Motiv – TGI with a holding of approximately 16.4% in the company’s shares.
Tamash Metal and Electric Industries was established in 1982 by Yoni Haredi. The company is engaged in the development, production and marketing of electrical cabinets, auxiliary equipment for electrical panels and various metal products. The company’s products are mainly intended for the industrial and construction sectors, and are installed in malls, shopping centers, hospitals, nursing homes, offices, residential towers, high-rise residential buildings and more. The production and development activity is carried out at the company’s plant in Ashkelon, which covers an area of about 8,000 square meters. The company employs about 185 workers, including engineers, practical engineers and technical consultants. With a backlog of honors that it has recently won, it has been able to acquire skilled workers and a company in its field of activity and increase exposure to the sector in which it is located, which has picked up gear and there are large tenders in the areas of infrastructure that the state promotes.
In exchange for Tamash’s activity, TGI will pay a total of NIS 51.5 million in cash and allocate to the seller 8.1 million shares in the company, approximately 16.4% of the capital and voting rights (after the allotment). The consideration at the time of completion of the transaction is subject to various adjustments, based on the results to be realized, as detailed in the immediate report. In addition, the transaction provided for the possibility of paying future consideration, which is conditional on Tamash’s financial results in the years 2022-2023.
The acquisition of Tamash is part of the implementation of the strategy formulated by the TGI board, according to which the company will work to accelerate its growth through mergers and acquisitions, focusing on industrial companies serving the automotive, real estate and infrastructure industries, all with the aim of building a significant industry group.
Tamash is a profitable company that enjoys growth. In 2021, the company’s revenues amounted to NIS 80 million, an increase of 25% compared to revenues of NIS 64 million in 2020. Adjusted net profit doubled in 2021 to NIS 13.9 million, compared with adjusted net profit of NIS 6.6 million in 2020.
As part of the deal, it was stipulated that upon its completion, Yoni Haredi will be appointed as a director of TGI and will serve as president of the Tamash activity. TGI intends to finance the acquisition of the activity through financing from banking corporations.
Barak Dotan, Chairman of TGI, said: “Tamash Metal and Electric Industries is one of the leading companies in Israel in the field of manufacturing electrical cabinets, which is growing rapidly and showing high profitability. “The combination of Tamash’s forces with TGI and the Brin-DBSI Group will make it possible to continue to develop its activities, alongside the founder Yoni Haredi, who will continue to lead the company with the existing team.”