The deal was made at a company value of NIS 45 million, 33% more than Vita-Galilee’s market cap.
Rich Products Corp. of the US has acquired 4.9% of Vita-Galilee Fruit Ltd. (Vita-Pri Galil) (TASE: VITA) at a company value of NIS 45 million, 33% more than its market cap on the TASE yesterday. Rich Products has a turnover of $2 billion, making the largest privately owned food company in the US. Ian Davis and Aviv Algor control Vita-Galilee.
Vita-Galilee chairman Avraham Burg said that Rich Products, which hitherto exported its products to Israel through Vita-Galilee, was investing in the company after monitoring the company’s recovery plan, which improved its results. He said that negotiations for the investment had lasted for over a year, after Vita-Galilee held the franchise to import Rich Products’ for the past 12 years.
Vita-Galilee today published its financial report for the third quarter. The company posted NIS 66 million in sales, 11.8% more than the NIS 59 million in the corresponding quarter of 2005. The company said the third quarter was normally weak, because of summer. The company is still losing money, but was able to reduce its net loss to NIS 3 million from NIS 4.4 million for the corresponding quarter.
Published by Globes [online], Israel business news - www.globes.co.il - on November 29, 2006
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