Solbar Hatzor’s company value for the investment is estimated at $50 million.
Sources inform “Globes” that First Israel Mezzanine Investors Fund (FIMI) is negotiating to invest $8 million in Solbar Hatzor, owned by Kibbutz Hatzor. If the deal goes through, FIMI will receive convertible bonds, based on a company value of $50 million.
Ashdod-based Solbar Hatzor develops, produces and markets soy protein concentrates. The company’s products are mainly intended for the health food industry. The Ministry of Industry and Trade Investments Promotion Center recently approved a $9 million investment to expand the plant.
The growing global health food market has driven Solbar Hatzor’s growth in recent years. The company has an estimated $50 million in annual shares, equally split between the domestic market and exports. Solbar Hatzor has an $8 million operating profit.
FIMI’s investment in Solbar Hatzor is aimed expanding the company’s position in the health food market. Solbar Hatzor chairman Uri Eshel confirmed that Solbar Hatzor was seeking a financial investor. FIMI general manager Ishay Davidi declined to comment on the report.
Published by Globes [online] - www.globes.co.il - on January 9, 2003