Maybe it's the past success with Nur Macroprinters, and maybe there's no connection, but what is certain is that the Fortissimo fund continue to believe in digital printing. "Globes" has learned that the private equity fund is about to acquire control (about 50% of the shares) in Israeli company DIP Tech, which provides solutions for printing on glass surfaces, for about $ 8million.The acquisition will give Fortissimo, headed by Yuval Cohen, control of the board of directors. As far as is known, Delek Group and the investment fund of billionaire Dan David have together invested $5 million in DIP Tech.
The list those involved in DIP Tech, founded in 2005, testifies to the company's deep familiarity with the print market. CEO Michael Rolant was president of Creo Israel until it was bought by in 2005 by Kodak for about a billion dollars. Rolant left Kodak in early 2006, and later joined DIP Tech. Rolant confirmed the deal, but the Fortissimo fund chose not to comment.
The spirit of Nur Macroprinters can be found not only in DIP Tech's future new partner, but also in the company's existing management. Founder Gera Eron set up joint activities with Nur a decade ago, and VPs Yariv Ninyo and Ynon Weksler came from Nur itself. Joshua Maor, husband of Bank Leumi CEO Galia Maor, who also runs Delek Group's Green Venture Capital, is chairman of the board. Apparently, the introduction of Fortissimo will be accompanied by changes in the board.
DIP Tech focuses on a relatively unknown niche in the printing industry. The company develops and manufactures digital printing machines and ceramic ink, for printing on glass surfaces. Printing on glass is primarily used in architecture of buildings and homes and in the vehicle industry.
So far, it seems that things have gone pretty well for DIP Tech. The company reportedly had sales of $11 million in 2010, and it is estimated that it will grow by about 50% this year, and that it is on the verge of profitability. However, moving forward is more complicated and, as in other cases in which Fortissimo has been involved, requires a board of directors that can push the company in other directions, and overcome differences of opinion among the existing shareholders.
Fortissimo's current investment will be through its second fund, which started activity in 2008 with $150 million. Last week, "Globes" revealed that Fortissimo intended to leverage the phenomenal success of the investment in Sodastream, - which provided a cash payback of approximately $ 120 million, and another $ 110 million on paper - to raise a new fund of 250-300 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2011
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