Hazera Genetics has reached an agreement in principle with Kibbutz Sde Eliahu, whereby it will invest NIS 10 million in Bio Bee, owned by the kibbutz, for 25% of the company. The deal reflects a company value of NIS 40 million, after money, for Bio Bee.
Under the agreement, Hazera Genetics will also receive two options for increasing its stake in Bio Bee to up to 50%. Further investments will be made at a company value of NIS 100 million. The implementation of the deal is subject to a due diligence examination and to approval by Hazera Genetics’ board of directors.
The agreement also provides for cooperation between the two companies, especially in marketing, research and development in green agriculture – a growing market around the world.
Bio Bee manufactures Bombos bees and pollinating bugs. It also researches and manufactures “natural enemies” for biological pesticide and combined pesticide systems. The company’s sales in 2000 were NIS 20 million, half of which from exporting pollinating bee hives, and half from sales on the Israeli market.
Hazera Genetics, controlled by Poalim Investments, develops and markets seed, especially hothouse tomato seeds. Its 2000 sales were $60 million.
Published by Israel's Business Arena on 11 February, 2001