It's one exit after another in the kibbutz plastics industry. Sources inform "Globes" that Haogenplast, which develops and manufactures PVC products, is being sold to German company Kap AG for NIS 105 million. Haogenplast is controlled by Kibbutz Ha'ogen in the Hefer Valley in central Israel, which holds 60% of the company. The kibbutz, after a members' meeting to approve the sale, will thus receive NIS 63 million gross from it.
The rest of the sale proceeds will go to the Lahav investment fund headed by Giora Offer, formerly CEO of Israel Discount Bank (TASE: DSCT), and Yael Git, formerly a senior manager at Bank Hapoalim (TASE: POLI). The Lahav fund first invested in Haogenplast in 2014, at a time when the company was in difficulties. It bought a 40% stake from the kibbutz for NIS 10 million and a further investment of some NIS 15 million in the factory itself. The fund can now expect to receive NIS 42 million for its shares in Haogenplast and to exit its investment with a positive return.
Under the terms of the acquisitions, the buyer will take on all of Haogenplast's debt. The deal also includes a 30% rise in the rent that the company pays to the kibbutz from NIS 2.95 million annually to NIS 3.84 million, starting from 2028, when the current lease expires.
Haogenplast was founded in 1952, and employs about 150 people at its factory on the kibbutz. It produces a range of advanced PVC sheets for applications in the defense, construction, agriculture, home design, and manufacturing sectors. Its products include floor coatings, weatherproofing for roofs, reservoir and pool linings, decorative sheets, and other, specialized products.
The buyer, Kap, supplies engineering products and components for the vehicle manufacturing, agriculture, and medical sectors. One of its subsidiaries is Elbtal Plastics, a direct competitor of Haogenplast in pool linings, an area in which Kap seeks to expand its business.
Kibbutz Ha'ogen's committee and economic management recommend the members to approve the deal. After it is completed, assuming that the kibbutz members do vote in favor of it, the proceeds will be paid into a special account until the members decide how they should be used.
Last week, "Globes" reported that MCP, which operates from Kibbutz Hama'apil, close to Kibbutz Ha'ogen, and which produces trays for the food industry, had been sold to a foreign buyer. The deal for the sale of MCP to food packaging giant Faerch of Denmark for a sum based on a valuation of €57 million (NIS 20 million) at the end of 2020 was recently approved and signed.
Published by Globes, Israel business news - en.globes.co.il - on August 30, 2021
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