Israel's biggest private equity firm FIMI Opportunity Funds, led by founder and CEO Ishay Davidi, today signed a deal to acquire joint control in transformer manufacturer Payton Industries (TASE: PAYT), controlled by David Yativ.
FIMI will pay NIS 123 million for 30% of the company, while Yativ will be left with a 30% stake. In the deal, conducted outside of the TASE, the Alfa Fund, a party-at-interest in Payton will sell a 14% stake at a company valuation of NIS 340 million.
As part of the deal, Yativ, who currently has a 51% stake in the company, will sell a million shares to FIMI outside of the TASE, at NIS 50 per share, representing a 12% stake, at a price that is a 25% premium on the average share price over the past 120 days. FIMI will buy an additional 1.47 million shares that will be allocated by the company for a total holding of 30%. In addition, FIMI will provide Payton with consultancy services in all there areas of expertise - identifying business opportunities, business development and collaboration.
Founded in 1996, FIMI is Israel's longest-established and biggest private equity firm with NIS 7 billion in assets under management. FIMI's funds buy controlling stakes in companies, and implement processes to significantly enhance their value.
To date, FIMI has acquired control of more than 100 companies and sold 75 of them for more than NIS 7.5 billion. Companies currently controlled by FIMI have more than 55,000 employees in 50 plants around Israel, and dozens more factories and companies around the world.
Payton Industries, through the companies it holds, mainly Payton Planar Magnetics (BR: PAY), which is traded on the Brussels stock market, is engaged in the development, production, trading and marketing of unique planar transformers of various types for sale on a range of markets including electrical components, communications, aerospace, electronics, military industries, and equipment for manufacturing semiconductors. The company has factories in the UK and US.
FIMI senior partner Gillon Beck said, "The investment in Payton Industries represents a continuation of FIMI's strategy of identifying companies with high growth potential. I am convinced that together with Payton's management and with the combination of our knowhow and experience in enhancing companies, we will grow the company in local and international markets.
Published by Globes, Israel business news - en.globes.co.il - on February 15, 2024.
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