Israel Reif Yur Afcon (Photo by Ezra Levy)
Afcon from the Shlomo Holdings Group will acquire 70% of the data group that provides services in the areas of management, maintenance, cleaning and security. Following the completion of the transaction, Afcon will hold 70% of the shares in a given group in exchange for a transportation amount in the ranges of NIS 90 million to NIS 120 million.
Israel Reif, Chairman of Afcon: “The acquired activity is material and synergistic with Afcon’s activity, and we see a complete transaction and strengthening of the range of services to our customers, which will also help deepen the relationship with them. We are constantly working to identify significant business opportunities for the company, which will help expand the scope of products and solutions we offer our customers and will maintain our position as a leading player in the field. “
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Yaron Krisi, CEO of Afcon: “The transaction is the implementation of Afcon’s strategy to increase its product offering to customers. The given group is one of the oldest and leading groups in the field. This is a significant step by the company to promote its business and expand its activities, and I am confident that the combination of Afcon and a given group will contribute greatly to our customers and strengthen the group’s status. We are constantly working to locate complementary activities and expand our activities. In accordance with the agreement, the chairman of the Naton group, Hezi Nural, will continue to serve in his position and will continue to lead the Daton group forward in the coming years as well. ”
Hezi Nural, Founder and Owner of the Daton Group: “I am pleased and welcome the business partnership between the Naton Group and Afcon Holdings, which is a strategic partner in the group’s activities. “For the benefit of Naton’s old and new customers and march it to the challenges of the future. The synergy between the companies will include the existing management backbone of the group and its employees. Daton will continue to operate according to the vision and values of its founders.
The agreement between the two companies stipulates that the consideration will be derived from the EBITDA of each of the acquired companies for 2021, with additional adjustments based on a set formula, with the consideration for 70% expected to be NIS 90-120 million. The expected completion of the transaction is in April 2022, subject to the signing of a detailed agreement and receipt of all approvals required for the execution of the transaction.
In addition, at the end of 36 months from the date of completion of the transaction, Afcon will have the right to oblige the sellers to sell it the balance of their shares in all companies (call option) and the sellers will have the right to oblige the company to purchase the remaining shares in all companies (put option). Afcon will be entitled to pay for the exercise of the options in the company’s shares at a discount determined compared to the market price of the share at the time of exercise.
The parties set out the principles to be included in the detailed agreement, including the composition of the companies’ board of directors, the votes on the board of directors and the general meetings; A list of issues on which decisions will require a special majority, such as the protection of the rights of sellers as a minority in companies; The manner of management of the companies, BOT transactions, dividend distribution, non-competition, financing of the companies by the shareholders; Conflict resolution and more.
A given group was established in 1997, and it unites a number of companies that operate according to the IFM model – placing a basket of services in the field of management and maintenance under one roof (ONE STOP SHOP), for a special group specializing in infrastructure and BOT projects.
The group’s services include: management, maintenance, cleaning, guarding and security for its hundreds of customers scattered throughout the country. The company’s customers include hospitals, universities, government campuses, government offices, and defense, insurance companies, banks, shopping centers, a variety of high-tech companies and more.
The group manages and operates properties nationwide in an area of about five million square meters through its 3,500 employees.
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