TAT Industries Ltd. (TASE:TAT5) subsidiary TAT Technologies Ltd. (Nasdaq:TATTF; TASE:TATTF) has signed a memorandum of understanding to buy 55% of Israeli innovative motion technologies developer Bental Industries Ltd., which will increase TAT Industries stake to 70%. Bental's company value for the deal is $12.5 million. TAT will pay $4.13 million when the deal is closed, and $2.75 million in five annual installments at 2% interest.
Bental produces PM Brushless Motors, PMGs (permanent magnet generators), electronic drivers and controllers, servo actuators, and similar motion technologies. It is a major supplier to the IDF, and it also exports to military aerospace and industrial companies worldwide. The company says that its customers include Israel Aerospace Industries Ltd. (IAI), Rafael Advanced Defense Systems Ltd., Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), IBM Corp. (NYSE:IBM), Raytheon Inc. (NYSE: RTN), CybAero, Schiebel, ABB (NYSE, SAX, DAX: ABB; SWX: ABBZ; LSE: ANN), Pall Aeropower, Eastman Kodak (NYSE:EK), and Galileo Avionica.
Kaman Holdings (Mendelson Group) Ltd. (TASE:KMNH), controlled by chairman Roni Elroyi acquired 69% of TAT Industries earlier this year.
TAT Technologies fell 3% to $13.12 by early afternoon on Nasdaq.
Published by Globes [online], Israel business news - www.globes-online.com - on January 3, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008