Kaman Holdings (Mendelson Group) Ltd. (TASE:KMNH) subsidiary Kaman Trade Ltd. has acquired 80% of rubber components manufacturer Techno Ad Ltd. from its owners CEO Uria Feuchtwanger and VP operations and engineering Ohad Eldar for NIS 15.2 million, giving the company a value of NIS 19 million. Kaman will pay NIS 11 immediately and the balance in two equal payments of NIS 2.1 million at the end of 2007 and 2008.
Kaman has a call option on the remaining 20% of Techno Ad, and Techno Ad has a 20% put option, which would give Kaman full ownership of the company. The option price is NIS 3.8 million, giving the same company value for Techno Ad as in the present deal, and is valid for three years beginning at the start of 2009.
Feuchtwanger and Eldar will continue to run Techno Ad. The Holon-based company has been in business for 40 years, manufacturing rubber and metal components for Israeli and foreign companies. The company’s products include standard and customized rubber diaphragms, oil seals, O rings, silicon components, bearings, and brass, stainless steel, bronze, steel and other metal components used in agricultural machinery, water, vehicle, food, medical equipment and electronics industries. The company’s inventory includes over 15,000 parts, and it has 2,000 customers.
Published by Globes [online], Israel business news - www.globes.co.il - on January 29, 2007
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