The Dead Sea Bromine Group today signed an agreement for the purchase of 26% of Chemada, which engages in the manufacture of fine chemicals, for $9 million. Chemada, controlled by kibbutzim Nir Yitzhak and Sufa, is a major customer of the DSB group.
In addition, the Bromine group has acquired an option to purchase another 24% of Chemada’s shares in the next two years, and to increase its holding in the company to 50%.
The DSB wished to acquire control in the company, but the Chemada owners turned down their offer.
Chemada engages in the manufacture of fine bromine compounds as interim products for the pharmaceuticals, agrichemicals and photography industries. The bulk of its output (95%) is for export to West Europe, the United States and Japan. The plant is a recognised supplier of some world leaders in the field.
Chemada’s annual sales turnover is $20 million. According to the group’s general manager, this is DSB’s first significant acquisition in the field of fine chemicals for the supply of interim products to the pharmaceutics and agrichemicals industries. He said the plant is expected to double its sales in the next five year. The plant has a staff of one hundred.
Published by Israel's Business Arena August 12, 1999