Teva’s miss is the profit of Phimie and her partners. Similar to other investment funds, the private equity fund Pimi, led by Yishai Davidi, continues to take advantage of the tide in the capital market to issue companies that have reached double and multiplied values compared to the value at which it acquired them. In this case, it is a purchase made under pressure (distress), of who was the flagship of the Israeli economy – Teva.
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Calcalist has learned that Phimie is currently promoting the IPO of Simplivia on the Tel Aviv Stock Exchange at a value of NIS 1.2 billion. The annual reports of 2021. Simplia intends to raise NIS 300 million, while the current shareholders – Phimie (65%), the Phoenix Insurance Company (16.5%) and Bank Leumi (16.5%, through Leumi Partners) – may make a sale offer as part of the offering.
Simplia is the current name of Teva-Migda, which was a subsidiary of Teva, which operated and still operates from a factory in Kiryat Shmona. As part of Teva’s need to deal with a huge debt of about $ 36 billion, which it took out in order to acquire Allergan’s generics division, the pharma company sold a variety of assets. In May 2019, Phimie acquired Teva-Migda for $ 47.5 million (NIS 170 million at the time). That is, the investment fund intends to issue it today at a value of 7 times before the money.
Following the acquisition, Pimi appointed Uri Yehudai as active chairman, alongside CEO Oded Greenstein. Yehudai is Davidi’s cousin, and who was the CEO of the Frutarom flavor and fragrance giant, which was sold to IFF for $ 6.4 billion. dollar.
In October 2020, a year and a half after the acquisition, Phimie realized part of the investment when it sold 33% of its simplicity to Phoenix and Leumi Partners, the investment arm of Bank Leumi, for $ 47 million and at a company value of $ 140 million (NIS 475 million at the time). That is, already at that point in time, Phimie recouped the full investment, and was even profitable on it, because six months earlier she had drawn a dividend from Simplia.
If the company’s IPO goes ahead as planned, Pimi’s partners can be satisfied, because it will be valued at 2.5 times the value at which Phoenix and Leumi entered it.
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Leumi Partners CEO Avi Ortal, Yishai Davidi and Phoenix CEO Eyal Ben Simon
(Photos: Oren Dai, Yonatan Blum, Inbal Marmari)
A little over a year after Phoenix and Leumi entered Simplia, the company made a significant acquisition. In January 2021, it acquired control (70%) of the diagnostics company Novamed at a company value of NIS 24 million. Novamed is a private company, which develops and manufactures diagnostic platforms for home care, and also deals in the fields of digital medicine. During the Corona epidemic, the company, which employs 100 people in Jerusalem, became the state’s supplier of sampling kits and pens for corona testing.
The purpose of the acquisition was to help Simplia establish diagnostic activities in the field of early detection of diseases: from viral and bacterial infection to early detection of heart attacks. As patients refrained from reaching hospitals during the plague, the purchase became more lucrative for Simplia, and was reflected in its financial results.
If the offering goes ahead as planned, Pimi’s partners will also be able to be satisfied, as it will be valued at 2.5 times the value at which Phoenix and Leumi entered into an investment in Simplia in 2020.
Simplia, established in 2005, is engaged, as mentioned, in the manufacture of medical equipment and protective equipment for medical staff, designed to protect them from exposure to hazardous substances, especially when preparing treatments and medications for patients. This is an area in which awareness has been rising in recent years, and which has received a significant boost during the corona plague. Thus, in the United States, a law has been enacted that requires the use of protective equipment when dealing with drugs that may be dangerous to the therapist, with an emphasis on chemotherapy drugs.
Today, Simplioia, which employs 200 people and has offices in Hod Hasharon, markets its products to more than 30 countries around the world. The company has annual sales of NIS 250 million, and together with Novamed’s sales they reach NIS 400 million. As far as is known, Simplia is a profitable company.
Simpliao’s competitors are mainly American public companies, such as ICU and Beckton Dickenson, which are valued at $ 4.7 billion and $ 80 billion, respectively.
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Simpliaoya chairman Uri Yehudai
2021 was a record year in the field of issues in Israel, and not only in it. Last year, a record number of 97 companies were issued on the Tel Aviv Stock Exchange, raising more than NIS 10 billion from the public. The value to complete the issue, or to cancel it completely, for example, the steel products manufacturer Iskur, which is controlled by the Kedma Investment Fund, canceled its issue after failing to obtain the value it requested – NIS 1.8 billion.
However, and as many institutionalists make clear, the market is open to good companies with real business and cash flow. Thus, for example, yesterday the public investment house Moore completed the issuance of its provident company. Moore Gamel raised NIS 100 million at a value of NIS 669 million, slightly more than the value she was aiming for. Last month, the home-protected housing chain in the village also completed its issuance according to the value it aspired to – NIS 1.15 billion – and even increased the amount raised by 27% to NIS 255 million, due to permit requests.
Phimie is the largest private equity fund in Israel. It was established in 1996, manages $ 5.5 billion in assets, and recently raised the seventh fund, the largest in its history, and the largest in the history of the local private equity market – $ 1.2 billion.