Company TJI Investments (Formerly Tadir-Gan) is making a second investment since it came under the control of Barak Dotan and Yossi Ben Shalom. Today, the company announced that it has signed a memorandum of understanding for the acquisition of control (55%) of the Lorden heat exchanger company for NIS 13 million.
Lordan, wholly owned by Kibbutz Kfar Szold, is engaged in the design and manufacture of heat exchangers for air conditioning and cooling, and in the design and manufacture of cooling and heating systems, condenser batteries and evaporator batteries. The company, established in 1961, supplies products to companies in the fields of industry, construction, high-tech, transportation. The same products are installed, among other things, in central air conditioners, air conditioners for public transportation, trucks, factories and cold rooms.
As part of the deal, TGI will flow to Jordan NIS 10 million in cash against the allocation of participation rights, while an additional NIS 3 million will be paid to Kibbutz Kfar Szold. The agreement also stipulates a contingent consideration of up to NIS 8 million, which will be paid to the kibbutz as a derivative of Lordan’s financial results in the years 2022-2024.
Lorden owns two production sites, the main one in Kibbutz Kfar Szold and the other in the UK. The company also has front warehouses serving customers in Europe, the US, Australia and Asia.
In 2021, Lordan presented revenues of NIS 71 million and a net profit of NIS 4.3 million. According to TGI, the acquisition is made as part of the implementation of the company’s strategy to become a leading industrial group, through mergers and acquisitions of industrial companies serving the automotive, real estate and infrastructure industries.
This strategy is led by Dotan and Ben Shalom, who last year took control of TGI (then still under the previous name Tadir-Gan), from the hands of the Pimi Foundation. Control was transferred for a future amount that could reach a maximum of $ 10 million, depending on the company’s future results.
At the time, TGI held full ownership of Ortal Magnesium Castings, which manufactures and markets magnesium assemblies for the traditional automotive industry and electric vehicles. As a result of the implementation of the new strategy, TGI announced last month that it had entered into an agreement to acquire Tamash Metal and Electric Industries’ operations in exchange for NIS 51.5 million in cash and an allotment of 16.4% of its shares.
Tamash 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. Based on 2021 data, the aggregate turnover of the three activities (existing and acquired) of the TGI Group amounts to approximately NIS 220 million.
According to Barak Dotan, Chairman of TGI, “Lorden is a profitable and successful company, and its acquisition fits in well with the strategy we set for TGI. Eran Tibon, CEO of TGI, added that “Lorden is one of the oldest and highest quality kibbutz companies in Israel. The company will continue to be led by the existing team.
Hiki Davidov, Chairman of Kibbutz Kfar Szold, noted that the partnership formed between the kibbutz and the TBS company DBSI-Brin is an important milestone in Lorden’s life. TGI’s investment is an expression of trust in the kibbutz as a partner, company, management and employees. The company will continue in the coming years. “