Viola Private Equity has invested in Degania Silicone Ltd., a manufacturer of of high-quality silicone products, controlled by Kibbutz Degania B. The investment was the latest in a series of deals for kibbutz companies, following the sale of Shamir Optical Industries Ltd. (Nasdaq: SHMR; TASE: SHMR) to France's Essilor International S.A. (Euronext: EI).
Viola acquired 40% of Degania Silicone for $27 million, giving a company value of $68 million (NIS 243 million), after money. Most of the shares were bought from Kibbutz Degania B, which will report a large capital gain, and will own 36% of the company after the sale.
Kibbutz Degania B has a population of 510, 220 members, 70 children, and the rest soldiers and residents and their children. Degania Silicone is the kibbutz's most important factory, alongside Degania Sprayers Company Ltd., a manufacturer of agricultural and industrial sprayers, and Deganit B&B.
Other shareholders in Degania Silicone after Viola's investment include 20% held by IGI, a private equity unit of BRM Capital, managed by Eli and Jerusalem Mayor Nir Barkat, and Degania Silicone managing director Amos Nahir, with 4%.
Degania Silicone was founded in 1984. It manufactures silicone catheters for urology and cardiology. In April, it acquired France's Arthesys SA, an OEM company that designs, develops,and produces a range of cardiovascular catheters and stents. Degania Silicone has 850 employees in Israel, France, Germany, the US, and India.
Viola Private Equity's investment in Degania Silicone is its largest investment to date, and signals its confidence in kibbutz industries.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2010
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