Precisely when Katyushas are whistling over Galilee Kibbutz Naot Mordechai and the factory of Naot Footwear Industries Agricultural Cooperative Society Ltd. (Teva Naot) located there is silent, foreign investors found the time and courage to invest in an Israeli company. Shamrock Holdings yesterday announced the acquisition of 66% of Teva Naot at a company value of NIS 130 million.
At the same time, IES Electronics Industries Ltd. (TASE:IES), controlled by Haim Geyer, signed an agreement with Shamrock for an option to acquire 15% of Teva Naot from wholly owned Shamrock subsidiary Naama, which owns 66% of Teva Naot.
Teva Naot reportedly posted a net profit of NIS 22 million on NIS 110 million in sales in 2005, and has shareholders’ equity of NIS 50 million. The company was founded in 1942, and was on the verge of bankruptcy in 1998, when Israel’s shoe market was opened to imports. The company had NIS 55 million in sales in that year and posted a loss.
Teva Naot chairman Israel Oz took up his post in 1998, and together with general manager Michael Illouz, turned the company around and made it into a manufacturer of health fashion shoes. In 1998, Kibbutz Naot Mordechai and its companies had a debt of NIS 150 million. After the deal, the kibbutz’s debt will be cleared, and its members will be financially secure.
According to Teva Naot’s reports, 70% of production is exported, mostly to the US, Canada, the UK, Germany, and Australia. The company’s domestic sales are handled through a chain of 17 stores under its ownership and over 100 independent companies.
Published by Globes [online], Israel business news - www.globes.co.il - on July 19, 2006
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