Barak Dotan (Photo by Nir Cohen)
TGI, better known by its previous name, Tadir-Gan, acquires control of Jordan for NIS 13 million. Lorden, owned by Kibbutz Kfar Szold, designs and manufactures heat exchangers for air conditioning, cooling and heating systems, condenser batteries and evaporator batteries. Lorden’s revenues in 2021 amounted to NIS 71 million, and net profit was NIS 4.3 million;
The signing of the Memorandum of Understanding for the acquisition of control of Lorden is part of TGI’s strategy to grow through mergers and acquisitions of industrial companies serving the automotive, real estate and infrastructure industries. About NIS 220 million.
Barak Dotan, Chairman of TGI, said: TGI has signed a memorandum of understanding to acquire control of Lorden – a collective company with a global deployment that develops heat exchangers and various cooling and heating systems that help industrial customers around the world save energy and lower operating costs.
“Lorden is a profitable and successful company, and its acquisition fits in well with the strategy we set for TGI. The acquisition of control of Lorden is a direct continuation of the acquisition of Tamash Metal and Electricity Industries.
Eran Tibon, CEO of TGI: “Lordan is one of the oldest and highest quality kibbutz companies in Israel. The company’s products meet the most stringent international quality standards, and they provide the best solution for companies in the manufacturing, communications and transportation industries in everything related to complex heating and cooling needs. The company will continue to be led by the existing team.
“We hope the combination of forces with TGI and the Brin-DBSI Group will enable the company to make new achievements. The latest deals we have reported join an agreement we recently signed with a new customer to supply Audi’s electric vehicle assemblies in a $ 15 million deal, so TGI is positioned Now at a convenient point for continued growth. ”
Hiki Davidov, Chairman of Kibbutz Kfar Szold: “Lordan has been a major and significant business activity in Kibbutz Kfar Szold for many years. Many of the kibbutz members have worked or are still among its employees. The partnership formed between the kibbutz and the TBS company DBSI-Brin is an important milestone in Lord’s life. As part of the deal, as completed, Jordan will receive an immediate investment of NIS 10 million, which will enter the company’s coffers and be used to continue the investments for the company’s development and growth. “TGI’s investment is an expression of trust in the kibbutz as a partner, in the company, in the management and in its employees, and we hope that it will contribute significantly to the company’s development in the coming years as well.”
TGI (formerly: Tadir-Gan), is engaged in industrial activity in the fields of automotive, real estate and infrastructure, Lorden, fully owned by Kibbutz Kfar Szold, engaged in the design and manufacture of heat exchangers for air conditioning and cooling, and the design and manufacture of cooling and heating systems, condensers and evaporators. , Established in 1961, supplies its products to companies in the fields of industry, construction, high-tech, transportation, etc. The company’s products are installed, among other things, in central air conditioners, air conditioners for public transportation, trucks, factories and cold rooms.
Lorden has global operations, and owns two production sites in Israel and one in the UK, as well as front warehouses serving customers in Europe, the US, Australia and Asia. The company’s main plant is located in the village of Szold, and covers an area of 12,000 square meters. The company’s revenues in 2021 amounted to NIS 71 million, and net profit was NIS 4.3 million.
TGI will invest NIS 13 million for 55% of the participation rights in Jordan. A total of NIS 10 million will be paid in cash against the allocation of participation rights in Lord to TGI (the consideration will go into the Lord’s coffers), and an additional NIS 3 million will be paid to the existing rights holders in Lord. The agreement also stipulates a contingent consideration of up to NIS 8 million, which will be paid to the existing rights holders in Jordan as a derivative of Lordan’s financial results in the years 2022-2024. The agreement also provides for a mechanism that regulates a majority of TGI’s representatives on the Lords Board of Directors. TGI is currently working to complete due diligence and sign a binding agreement.
The acquisition of control of Lorden is another step in the implementation of the strategy formulated by the company, according to which the company will work to accelerate its growth through mergers and acquisitions, focusing on industrial companies that serve the automotive, real estate and infrastructure industries.
As part of this strategy, last month TGI announced that it had entered into an agreement to acquire Tamash Metal Industries and Electricity in exchange for approximately 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.
The deal to acquire Tamash Metal and Electrical Industries and the Memorandum of Understanding to acquire control of Lorden join the traditional activity of TGI – manufacturing and marketing magnesium assemblies for the automotive and electric vehicles industry using Ortal Magnesium Castings (100%). Based on 2021 data, the aggregate turnover of the three activities (existing and acquired) of the TGI Group amounts to approximately NIS 220 million.