"Keter Plastics is negotiating to acquire seven companies around the world, in order to exploit the window of opportunity created by the market," Keter Plastics CEO Sami Sagol told "Globes" in an exclusive interview. Keter's business amounts to $700 million a year. Sagol owns the company as well as the Tel Aviv Hapoel football club.
Sagol said, "Last year, we saw that Keter's profitability enabled growth, so we formulated a strategy to acquire companies in financial distress caused by a loss of a competitive edge. We decided to move their production activities to Israel."
He continued, "Keter will be an international company. If all goes well, age and health permitting, Keter will be a $3-4 billion business."
Sagol stressed that merging with acquired companies did not involve laying off any company managers or workers, except for those in computer and information systems.
Keter has submitted a merger bid for US plastics company Rubbermaid, which has $1.2 billion in sales, although no answer has been received yet.
Sagol revealed that Keter was negotiating with Apax Partners, JP Morgan Chase & Company (NYSE:JPM), and Citibank (NYSE:C) to finance the deal. He added that Keter was also mulling the acquisition of US garden furniture maker Sirocco, which has $50 million in sales a year.
Sagol also said Keter would have to raise capital to finance its acquisition strategy, probably by bringing in a partner. "From Keter's perspective, we've concluded that a stock market issue is unsuitable."
Published by Globes [online] - www.globes.co.il - on July 13, 2004