Elco Ltd. (TASE: ELCO) founder and controlling shareholder Gershon (Georg) Salkind died today at age 87.

Elco, which is jointly managed by Salkind's sons, co-CEOs Michael and Daniel Salkind, has taken various measures in recent years to improve its situation, including the sale of assets and activities that are not part of its core business. These sales generated enormous one-time capital gains for the company, strengthened its core business, reduced its leverage, and bolstered its liquidity.

Elco currently operates in contracting and infrastructure, manufactures and markets consumer products, and deals in income-producing real estate. The company operates through three main subsidiaries: Electra Ltd. (TASE: ELTR), Electra Consumer Products (TASE: ELEK), and Electra Real Estate Ltd. (TASE:ELCRE), which have been showing improvement in their financial situation for quite some time.

Gershon Salkind founded the group in 1949 and owned 65% of its shares. It was originally a small company that supplied infrastructure to Israel Electric Corporation (IEC) (TASE: ELEC.B22). Michael and Daniel Salkind, who were appointed joint CEOs a decade ago, are regarded as complementing each other; Michael Salkind, who concentrates on financial matters, is described as having a phenomenal memory and complete command of figures, while Daniel Salkind focuses more on marketing and business development. The company's lean headquarters, which are operated by a staff of 10-15, provide for the needs of its subsidiaries in areas such as money management and legal advice.

Sources familiar with the company described Gershon Salkind as having been a partner in strategic decisions. He went to work at the company once every several weeks, but resigned from all the boards of directors on which he was previously active.

Published by Globes [online], Israel Business News - www.globes-online.com - on September 26, 2017

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