The shareholders in Israeli solar water solutions firm Chromagen agreed to sell the controlling stake (51%) to Groupe Atlantic. Kibbutz Sha’ar Ha’amakim and Tene Investment Funds, who control 68% and 32% respectively, accepted the French offer after struggling in their IPO bid on the Tel Aviv Stock Exchange.
The deal has yet to be signed, but according to the memorandum of understanding between the parties, Tene will sell its entire stake in Chromagen for NIS 48 million - at a valuation of NIS 150 million - while the kibbutz will sell 19% of its shares for NIS 25 million - based on a valuation of NIS 130 million.
Furthermore, the deal is expected to include reciprocal options for a future sale of the kibbutz’s remaining shares to Groupe Atlantic, which are priced at a higher valuations and dependent on Chromagen’s future performance.
Chromagen, founded in 1962, is the leading manufacturer of solar water solutions in Israel and its products are sold in 40 countries across the world. Its executive offices and solar water tank factory are located in Kibbutz Sh’ar Ha’amakim, while the solar collector facilities are in the Tsiporit Industrial Zone in the Lower Galilee.
Tene, a private equity fund, invested in Chromagen nine years ago, when it received 32% of its shares for some $6 million. Headed by Ariel Halperin, Tene tried to lead a Chromagen IPO last year in the TASE, including an offer to sell its shares in the company.
At the time, the firm’s NIS 150 million pre-money valuation was considered too high by institutional investors and the process was not pursued further.
Groupe Atlantic is a private French HVAC firm founded in 1968 by two engineers. Today it operates 17 factories worldwide with over 5,500 employees; eight of the factories are located in France and employ 3,500 workers.
Over the past decade, Groupe Atlantic has acquired seven firms from Germany, the UK, Turkey, Italy, and Austria. The acquisitions helped grow its revenue to €1.3 billion in 2015 from €850 million in 2010 and €550 million in 2005.
Groupe Atlantic’s solar water tank division made up 32% of the group’s revenue (€416 million) - which is expected to grow from the acquisition of Chromagen, with its revenue of NIS 200 million (€46 million).
Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2015
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