FIMI buys Rafa from Sackler family at NIS 700m valuation

Ishay Davidi

The Sackler family has sold its controlling 72% stake in the company probably because of the fallout from the opioid scandal.

FIMI Opportunity Funds has acquired a 90% stake in Israeli pharmaceutical company Rafa Laboratories Ltd. at a company valuation of NIS 700 million. The Sackler family has sold its controlling 72% stake in the company probably because of the fallout from the opioid scandal where its bankrupt company Purdue Pharma faces huge claims for developing and marketing OxyContin, the branded opioid painkiller at the heart of the opioid affair in the US. The balance of shares are held by the Levin and Reshef families.

FIMI has a major healthcare portfolio including drug developer Kamada Ltd. (TASE: KMDA), Rekah Pharmaceuticals, medical services and logistics company Novolog, and medical devices marketing company Medtechnica. Last week it sold a 35% stake in medical device company Simplivia and retains a 65% stake.

Rafa, which was founded in 1937 by Dr. Baruch Levin, manufacturers generic pharmaceuticals for marketing in Israel. The Sackler family bought Rafa in 1973 and today the company's annual revenue is estimated at NIS 500 million with profitability of 20%-25%, which is typical for pharmaceutical companies. The company has hundreds of employees and a factory in Jerusalem, which began operating in 2013. Rafa's CEO is Amir Levin, grandson of the founder.

Amir Levin said, "The entry of FIMI as the senior partner and leader of Rafa will allow the continued operations of the factory in Jerusalem and the promotion of Rafa's business in Israeli and overseas markets. This is a significant day in the long history of the company.

Published by Globes, Israel business news - en.globes.co.il - on October 28, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Ishay Davidi
Ishay Davidi
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