Palace Industries (PI) Ltd. (TASE: PLND), a subsidiary of Matthew Bronfman and Shalom Fisher's Isralom Properties Ltd., yesterday signed an agreement to acquire the production line, brand, and inventory of raw materials for the manufacture of aluminum products of Lageen Ltd., controlled by Kibbutz Yagur, for NIS 16.8 million.
The agreement includes the purchase of up to NIS 8 million of inventory. Palace Industries will pay NIS 2.5 million for the equipment when the deal is closed, and will pay the balance in 36 installments beginning this year. The agreement also states that Bronfman and Fisher will be Lageen's controlling shareholders until all the installments are paid.
Since 2008, Lageen Ltd. has operated in the near-food industry, manufacturing supplementary products such as candles, wet wipes, aluminum and paper products, and disposable cutlery.
Palace Industries is traded at a market cap of NIS 58 million. It posted a profit of NIS 1.2 million in January-September 2010, down from NIS 4.9 million in the corresponding period of 2009. Revenue was NIS 235 million, unchanged from the corresponding period. The company recently raised NIS 35 million in bonds.
Published by Globes [online], Israel business news - www.globes-online.com - on January 12, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011