Third purchase forTadiran Within a year of a company in the field of solar energy: the company acquires control of the Italian VP Solar for about 32 million euros. The company’s share on the Tel Aviv Stock Exchange is responding with a jump of 6.5% at this time.
Tadiran will pay around 32 million euros for 60% of the company’s shares, and up to an additional 13 million euros will be paid according to the set targets. Under the acquisition agreement, the subsidiary was granted a CALL option and the seller a PUT option to purchase the balance of the shares (40%), and this option will be exercisable for a month and a half after VP Solar’s financial results for 2024 (early 2025) are announced. 2023-2024.
VP Solar was established in 1999 and specializes in the import, design, distribution and trade of products and solutions for photovoltaic systems in Italy and Europe. The company markets solar panels, energy conversion systems (among others of Solaredge Israeli), storage systems, ready-made construction systems, heat pumps and products for charging electric vehicles.
VP Solar ended the first ten months of 2021 with revenues of 94.9 million euros, a growth of 116% compared to 2020 as a whole. The increase in revenue translated into an increase in EBITDA (profit before financing expenses, tax, depreciation and amortization) which was € 10 million compared to € 3.2 million in 2020 (an increase of 213%).
Lower profitability than in the causes of air conditioners
This is Tadiran’s third acquisition this year in the field of renewable energy. The first was by the Israeli Eliran Solar (who later changed her name to Tadiran Solar). Tadiran acquired 75% for about NIS 45 million, and an additional consideration to be paid subject to meeting the targets, and it holds the option to acquire full ownership of the company. The second acquisition was the full ownership of Aviam Systems, also an Israeli company, for approximately NIS 30 million, and additional consideration of up to NIS 22.5 million based on meeting targets.
Tadiran’s reports for the third quarter show that revenues grew by 23.2% to NIS 398 million, compared with NIS 323 million in the corresponding quarter last year. In the first nine months of the year, Tadiran’s revenues crossed the NIS 1 billion mark for the first time and amounted to NIS 1.07 billion, after growing by 36.3% compared to the same period last year.
Net profit increased by about 7.5% compared to last year and amounted to NIS 40.2 million. Gross profit for the quarter increased by 7.7% and amounted to NIS 97 million, but its share of total revenues decreased to 24.4%, while in the corresponding quarter last year the gross profit was NIS 90.1 million and 27.9%. According to the company, the operations of Tadiran Solar are characterized by lower gross profitability than the operations of the air conditioners.
Tadiran is currently trading at a 6.5% increase on the Tel Aviv Stock Exchange. The company’s market value is around NIS 3.7 billion (before the rise today), having jumped 88% in the past year and close to 500% in the last three years.
The controlling owner of Tadiran Group is Moshe Mamrod, who holds 64.4% of its shares and also serves as the company’s CEO and director. Mamrod said that the acquisition of VP Solar is a ticket to the large and growing European market through stable and profitable activity In the field of mergers. “