Robotic swimming pool cleaners manufacturer Maytronics (TASE: MTRN) has turned from the greatest success story of kibbutz industry into one of the biggest cases of value destruction on the Tel Aviv Stock Exchange. At its peak, the company had a market cap of NIS 9 billion, making every member of Kibbutz Yizre'el (located at the foot of Mount Gilboa) a paper millionaire, but within the past five years it has lost 97% of its value. Along the way, it has experienced a sustained decline in revenue and incurred painful losses, casting serious doubt on its continued viability. Now, Maytronics and the kibbutz that controls it have before them the prospect of opening a new chapter in its history. At the end of last week, private equity firm FIMI Opportunity Funds, headed by Ishay Davidi, submitted a non-binding offer to acquire a controlling stake (50%) in the company, at a pre-money valuation of NIS 200 million, which is 8% lower than Maytronics’ market cap just before the offer was made.
Under the terms of the offer, FIMI would initially invest NIS 200 million through an allotment of shares representing about 50% of the company-a move that would make FIMI the controlling shareholder. This would dilute the holdings of Kibbutz Yizre'el, the current controlling shareholder, from its current 56% stake to 28%. The other shareholders would also see their holdings diluted: hedge fund Spiral (currently holding about 7%), investment house Analyst (5%), and the public (the remainder).
FIMI would also be granted the option to purchase additional shares over the next two years in two separate tranches, at company valuations of NIS 250 million and NIS 300 million, for an additional total investment of up to NIS 150 million.
Completion expected by year end
At this stage, the proposal is non-binding, and FIMI has been granted a two-month period to complete its due diligence examination of Maytronics. In the interim, the company is expected to approve the move, starting with a meeting of the kibbutz members, and subsequently in a formal shareholders' meeting. Provided these approvals are obtained, and assuming FIMI’s due diligence examination is completed to its satisfaction, a definitive agreement is expected to be signed by the end of the year.
Despite the considerable dilution of their holdings, FIMI’s offer will most probably be approved by the kibbutz members, as it is backed by the company’s board of directors, which is controlled by members of Kibbutz Yizre'el. In fact, it was the board itself that approached FIMI a few months ago, asking it to consider entering the company as a strategic investor. FIMI has a substantial track record of rescuing companies in crisis and significantly enhancing their value.
Over the past thirty years, FIMI, Israel’s largest private equity firm, has acquired a long list of companies facing difficulties, consistently demonstrating an ability to revitalize them and generate substantial value. For instance, in 2014, FIMI acquired irrigation products company Rivulis (then known as John Deere Water) for $57 million, after the firm had incurred heavy losses for its parent company, tractor manufacturer John Deere.
Six years later, after the company had returned to profitability and grown to become the second-largest player in its sector, FIMI sold its stake to Temasek Holdings, an investment fund owned by the government of Singapore, realizing a fourfold return on its investment.
The firm believes it can spearhead a similar turnaround at Maytronics. In this context, observers note that despite a persistent decline in revenue, Maytronics’ products remain market leaders in pool cleaning, a market that continues to grow steadily, driven by rising standards of living in the Western world. It is safe to assume that this has not gone unnoticed by the managers at FIMI, who have been monitoring the company and its performance for several years.
If the deal materializes, FIMI will inject NIS 200 million into the company (a figure that could rise to as much as NIS 350 million). This capital is intended to bolster Maytronics’ cash flow, specifically by reducing its net debt, which currently stands at nearly NIS 600 million.
Initially, FIMI is expected to focus on stemming the company’s losses through efficiency measures. In the second phase, the plan is to focus on expanding and enhancing the company’s operations. Looking further ahead, FIMI might even drive expansion by acquiring other companies in the sector or entering new markets-a strategy the fund has employed with other companies in its portfolio.
From NIS 5 billion to NIS 140 million
The backdrop to FIMI’s investment proposal is the downward spiral Maytronics has experienced in recent years. The company was founded in 1983 at Kibbutz Yizre'el and listed on the stock exchange two decades ago. In 2021, the company achieved record-breaking performance, driven by a surge in demand for its products during the Covid-19 pandemic. Lockdowns kept people at home for extended periods, leading to greater use of their swimming pools. This propelled the company’s stock to a peak valuation of NIS 9.1 billion, translating to a paper value of nearly NIS 17 million for each of the approximately 300 members of Kibbutz Yizre'el.
However, the global recovery from the pandemic proved painful for the company and the kibbutz members. In the post-pandemic years, sales declined, partly due to distributors having overstocked their inventories earlier on. This cooling of demand coincided with rising interest rates, a relatively long winter, and shifting customer preferences. Compounding these challenges was a market transformation: the rise of Chinese brands offering cheaper alternatives to the company’s products, which eroded its market share. Consequently, the projection that Maytronics made in 2024 that it would reach annual revenue of NIS 3.2-3.6 billion and an operating margin of 14-18% by 2028, collided with a grim reality: in 2025, revenue totaled only NIS 1.4 billion, accompanied by a net loss of no less than NIS 222 million.
In the light of these dismal results, the company’s CEO at the time, Sharon Goldenberg, announced his resignation in late 2025. He stepped down in February, and was succeeded by Rafi Ben Ami, who joined from Applied Materials.
However, the negative trend in the company's results persisted into the first half of 2026, with revenue falling to NIS 747 million, 13% lower than in the same period last year. On the bottom line, Maytronics posted a loss of NIS 34.5 million.
Looking ahead, Maytronics’ situation is far from encouraging. At the end of the first half, the company’s orders backlog was NIS 98.5 million. The company projects that it will conclude the third quarter of this year with revenue in the range of NIS 260-290 million, 19% less than in the corresponding quarter last year.
The company’s stock has lost approximately 45% of its value over the past year (despite a 16% gain last Thursday, following reports of an anticipated investment), bringing its total decline from its peak to roughly 97%. Consequently, the value of Kibbutz Yizre'el’s stake has plummeted from a peak of approximately NIS 5 billion to just NIS 141 million, translating about half a million shekels for each individual member. Now, the kibbutz members must decide whether to relinquish control of the company in the hope that FIMI will steer Maytronics back toward success and enhance the value of their minority holding, or whether to continue on their independent path, which in recent years has led to heavy losses and a massive erosion of value.
Published by Globes, Israel business news - en.globes.co.il - on October 26, 2026.
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