Another excellent kibbutz industry is set to go public on the Tel Aviv Stock Exchange (TASE). Solbar Industries, owned by Kibbutz Hatzor, will join the ranks of publicly traded kibbutz industries such as Albaad Massuot Yitzhak (TASE:ALBA), Maabarot, Plasson Industries (TASE:PLSN) and Gan Shmuel Foods.
Solbar, which is active in the field of soy protein products for the health food industry, submitted a draft prospectus to raise NIS 125 million in an initial public offering of shares, convertible bonds and options. The lead underwriter for the IPO is Poalim IBI Underwriting and Investments (TASE:PIU). The issue is expected to reflect a value of $70-80 million, before the money.
Last year, First Israel Mezzanine Investors Fund (FIMI) held initial negotiations to invest in Solbar at $50 million company value. Solbar had $18 million in shareholders equity at the end of September 2003.
Solbar Industries Ltd. has two divisions: Solbar Hatzor Ltd. and Solbar Plant Extracts Ltd. In 2000, the companies were brought together under one roof.
Solbar was acquired by Kibbutz Hatzor in 1987. Since then, its volume of activity has grown rapidly, by an average 30% each year. In 2003, the company posted around $100 million in sales. Today, Solbar is considered one of the three global leaders in specialized soy proteins, after DuPont Protein Technologies International (DuPont PTI)'s Solae soy protein brand, and Archer Daniels Midland (ADM).
Solbar's two manufacturing plants, in Ashdod and Ashkelon, employ 190 workers. Over the past two years, the company has invested $15 million in developing its infrastructure for the manufacture of soy protein concentrates and isolates, and soy isoflavones.
Published by Globes [online] - www.globes.co.il - on Tuesday, February 03, 2004