First Israel Mezzanine Investors Fund has signed a memorandum of understanding to invest $20 million in plastics company Raviv ACS Ltd. from Kibbutz Ravivim. Raviv ACS manufactures thermoplastic precision components for the automotive and telecommunications industries and has annual revenue of $70 million. The investment is being made as a loan and options at a company value of $40 million.

This is FIMI's fourth investment in a kibbutz industry. It has previously invested in Ginegar Plastics Products Ltd. (TASE:GNGR), Raval Ltd. (TASE: RVL) which manufactures automotive fuel systems and is a , and water cooler maker Tana Industries Ltd. (Tami4), which was sold last year to Strauss Group Ltd. (TASE:STRS) according to a company value of NIS 330 million.

FIMI received an option to increase its stake in Raviv to a maximum of 25%. The company is reportedly enjoying strong growth and may hold an IPO within two years. Last year 19% of the company was sold to Shamrock Holdings for $3.25 million - an investment that has since doubled in value.

Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2010

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