Ginegar Plastics Products Ltd. (TASE:GNGR) is in talks to sell Hyplast Ltd. for €15.5 million, seven years after acquiring the Belgian plastics company doubling Ginegar's turnover. Ginegar acquired Hyplast for €6.8 million in 2007, mostly in cash, and the rest in options, which have since been exercised for Ginegar shares.
Ginegar's shareholders include Kibbutz Ginegar in the Jezreel Valley (33%), Kibbutz Barkai (13%), and Discount Capital Markets Ltd. (17%). FIMI Opportunity Funds sold its stake in the company in 2013.
Hyplast manufactures a range of polyethylene products for agriculture, horticulture, construction, and industry, and also recycles plastic sheeting at its Belgian plant. Following its acquisition by Ginegar, it set up a US subsidiary Klerks Hyplast Inc. to market its products and provide logistics support in North America. Ginegar does not disclose Hyplast's results in its financial reports, making it impossible to know the company's share of Ginegar's total business. Ginegar gave Hyplast a €8.7 million owner's loan as of March 2013.
Although Ginegar is asking more than it paid for Hyplast, its investment to upgrade Hyplast's operations in 2011 has to be taken into account. Hyplast had 150 employees at the end of 2012, and its Belgian plant was operating at 65-70% capacity.
Published by Globes [online], Israel business news - www.globes-online.com - on February 26, 2014
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