Sources inform ''Globes'' that First Israel Mezzanine Investors Fund (FIMI) is in advanced negotiations to invest $3-5 million in Tana Industries (known as Tami 4), a manufacturer of water purifier dispensers.
Tana Industries (Tami 4) is owned by Kibbutz Netiv Halamed-Heh, and a private businessman. The company was valued at $15 million, before money, for the purposes of the private placement, which is intended as a preliminary stage before an initial public offering.
According to the deal terms now being formed, FIMI will invest in notes convertible into 20% of Tana Industries. The investment, should it be carried out, will go to expanding Tami 4 activities in the European market, considered the company's main engine of future growth.
The company's annual revenue currently stands at NIS 130 million, of which 75% comes from the Israeli market. Tami 4 is considered the local leader in point of use (POU) water purifiers that dispense hot and cold water, with 200,000 private and corporate customers.
Tami 4's primary competitors are Eden Springs (Maayanot Eden) (TASE:MEYD), manufacturer of Mey Eden mineral water, and bottled water company Neviot. Both provide customers with bottled water coolers, (as compared with Tami-4-type mains-fed coolers).
Published by Globes [online] - www.globes.co.il - on Monday, July 19, 2004