Israel Shipyards Reported yesterday (Tuesday) the expansion of its activity in the construction industry, after a granddaughter company owned by Cement (a wholly owned subsidiary) signed an agreement to purchase development, production, and sale activities of adhesives and powders in the field of construction from Keshet Prima.
The consideration in the transaction is approximately NIS 61.5 million, financed by Cement’s equity and through bank financing. In addition, it was agreed that an additional consideration would be paid, that in certain circumstances the amount would not be less than a total of NIS 26.35 million, and would be determined on the basis of a mechanism determined between the parties and based on the company’s results for 3-5 years. The parties will also sign an agreement for the provision of services, including management services for a specified period of time.
The revenues of the acquired activity amounted to NIS 204 million in 2021, compared with approximately NIS 194 million in 2020. The operating profit of the acquired activity amounted to approximately NIS 28 million in 2021, compared with approximately NIS 23 million in 2020.
Completion of the transaction is subject to the completion of conditions precedent, including obtaining approval from the Competition Authority.
Keshet Prima was established about 35 years ago and is still owned by the Geshuri family, the founding family. The company operates from the Nitzanei Shalom industrial zone and employs about 200 people. Under the agreement, Dr. Raanan Geshuri, CEO of Keshet Prima, will continue to serve in his position for at least three years.
The company is considered one of the leading manufacturers in Israel in the field of manufacturing adhesive mixtures intended for the construction industry, including adhesives for ceramics, plaster and more, a market that is estimated at NIS 800-900 million per year.
Cement, established in 2016, is considered the largest cement importer in Israel. In the past, it has announced its intention to begin operations in the field of gypsum. Last October, Israel Shipbuilding Industries reported the acquisition of an additional 25% in companies that make up the company’s cement segment, Cement and ISCO, to about 95.3% for about NIS 70 million.
Israel Shipyards Industries is owned by Shlomi Fogel, Sami Katsav, the Schmelzer family and the Group Gold Bond The stock exchange. The company is managed by Zvika Schechterman.