Elevator companies merge

Schindler Nechushtan Elevators will acquire Isralift Services for NIS 200-250 million.

There has been a large merger in Israels elevator market. Schindler Nechushtan Elevators Ltd., Israels oldest elevator maker, will buy the activities of Isralift Industries (1972) Ltd. subsidiary, Isralift Services (1973) Ltd. for NIS 200-250 million.

Schindler Nechushtan is a subsidiary of Schindler Holding AG (SWX:SCHN, SCHP), one of the worlds two largest elevator manufacturers, with 125 years of experience. It currently has 43,000 employees worldwide.

Isralift Industries is a private company owned by president Michael Ilan and his nephews. The late Yaakov Ilan founded the company 40 years ago. His sons, the Michael, and the late Shlomo Ilan, continued his legacy.

Isralift Services provides elevator services. Isralift Industries manufactures elevators, and IMS Investment Ltd. is a financial management company. The company has 10,000 customers.

Under the deal, Schindler Nechushtan will acquire the activities of Isralift Services, while the Ilan family will continue to own Isralift Industries. Sources said the parties have already signed an MOU, and that the deal is subject to approval from the regulators, beginning with Antitrust Authority director general Ronit Kan.

The sources added that, under the MOU, Schindler Nechushtan has undertaken to employ Isralift Services 250 employees for at least two years.

Michael Ilan said, We have an MOU, but there are many obstacles in the way, including the Antitrust Authority. If this is approved, the deal will go ahead, possibly within a few months, at which point we will settle the terms for the sale of the services activity.

He added that the Ilan family would continue to own Isralift Industries. Well continue making and selling elevators in competition with Nechushtan. He said that in view of Schindler Nechushtans commitment to employ Isralift Services employees, customers would sense no change.

Published by Globes [online], Israel business news - www.globes.co.il - on January 1, 2007

Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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