Kibbutz Naot Mordechai will sell control (apparently 51%) of health shoe factory Teva-Naot by the end of 2005, after negotiations with potential buyers.
The kibbutz members decided in principle last month to sell control of the company, which operates 16 outlets, and was a loss maker until a few years ago. The decision to introduce a partner was announced today, but according to company chairman Yisrael Oz, negotiations are still being conducted with several groups and several options are being examined.
Teva-Naot employs 200 people and its turnover for 2005 is expected to total NIS 110 million, compared with NIS 100 million last year. 70% of this year's turnover will come from exports. The company is estimated to be worth over NIS 120 million.
For seven years, Teva-Naot has been managed by CEO Michael Illouz, who is not a member of the kibbutz, and who turned the company around. Among other things, the company started employing prisoners in production workshops.
The introduction of a partner is intended to enable the expansion of the factory, and implementation of an ambitious strategic plan that involves doubling sales in Israel within three years and doubling export sales within five years.
At the beginning of the year, the members of Kibbutz Naot Mordechai received a dividend from the enterprise for the first time. The NIS 1.5 million profit for 2004 was distributed among the 300 members on the basis of the length of their membership, each receiving NIS 5,000 on average.
Published by Globes [online], Israel business news - www.globes.co.il - on October 11, 2005