Israeli private equity firm FIMI Opportunity Funds, led by founder and CEO Ishay Davidi, is close to acquiring a 50% controlling stake in Israeli defense company Marom Dolphin. The company, which develops and manufactures tactical carrying solutions for armed forces, has benefitted from increased orders from the Israel Defense Forces since the start of the war.
The deal is expected to reflect a company valuation of NIS 250-300 million for Marom Dolphin, with several private investment firms competing to buy the stake. However, FIMI usually only reaches advanced talks for an investment of this kind, if there is no bidding war with rivals.
For more than 30 years, Marom Dolphin has been developing tactical equipment for combat forces. Based at the Alon Tabor industrial zone in the Jezreel Valley in northern Israel, the company was founded by Yariv Sagi, Oded Brosh and Ilan Gurion, former IDF commandos, who can now expect to earn NIS 150 million from the exit.
The company's products include advanced vests, tactical helmets and armor, tactical cameras and even robotic systems for heavy loads. The company supplies these products to the IDF including special units, Israel Police, and the Border Police as well as to overseas customers including armies in Western Europe and Asia. Investors have been eager to buy a stake in the company since the outbreak of the Russia-Ukraine war in 2022.
FIMI has already acquired control of many companies in the defense industry including Ashot Ashkelon, Orbit, ImageSat and TAT Technologies as well as Bet Shemesh Engines.
Published by Globes, Israel business news - en.globes.co.il - on May 29, 2024.
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