The Tiv Taam group, controlled by CEO Yaakov (Kobi) Trebitsch, today completed its acquisition of 75% of Maadaney Mizra. Antitrust Authority director general Dror Strum approved the deal, which reflected a company value of NIS 67 million for Maadaney Mizra.
Tiv Taam’s industrial activity is projected to exceed NIS 500 million in 2006, with hundreds of employees in its four manufacturing facilities. Tiv Taam plans to strengthen and develop the Maadaney Mizra brand name in the direction of premium products.
Closing the deal was long delayed by money that Kibbutz Mizra owed to the Bank Leumi (TASE: LUMI) and Bank Hapoalim (LSE: BKHD; TASE: POLI). Because of Kibbutz Mizra’s large bank debt, all its property, including the Maadaney Mizra plant, was servicing the debt. In order to privatize the kibbutz factory, the debt had to be separated from the privatized activity.
Despite the NIS 67 million company value for Maadaney Mizra, as far as is known no financial transaction took place. The two parties founded a joint company.
The Tiv Taam supermarket chain has fourteen branches. Its annual turnover is NIS 1.3 billion including manufacturing, importing, and retail business.
Published by Globes [online] - www.globes.co.il - on July 28, 2005