US engineering components manufacturer ITT (NYSE: ITT) has announced that it has acquired Israeli valve manufacturer Habonim for $140 million in an all-cash transaction. Habonim, based on Kibbutz Kfar Hanassi in the Upper Galilee, will become part of ITT’s Industrial Process (IP) segment.
Habonim designs and manufactures valves, valve automation for the gas distribution (including LNG), biotech and harsh application service sectors. The company’s highly differentiated business model allows for the commercialization of a majority of its products through distribution while maintaining its end-user relationships. Habonim also sells directly to original equipment manufacturers and integrators for customized solutions. The company has operations in Israel, the US and the Netherlands and has 200 employees.
The exit is a major success for the Tene Investment Fund, which bought a controlling stake in Habonim in 2019, for a fraction of the sum it is now receiving.
ITT president and CEO Luca Savi said, "Habonim is a great addition to the ITT portfolio. The company’s complementary ball valves offering and focus on harsh applications in attractive end markets will drive stronger sales growth for Industrial Process and ITT over the long term. Like ITT, Habonim has developed strong, lasting relationships with its customers and end users based on consistent quality and their ability to offer highly engineered solutions. The acquisition provides ITT access to new, attractive niche markets, expands IP’s existing specialty valves portfolio, including through its cryogenic and hydrogen ball valves offerings for green energy applications, and builds on an already strong distribution network in North America."
Habonim CEO Ilan Gilboa added, "Becoming part of ITT is a very important and exciting step for Habonim on our path to grow and expand our global leadership in the highly performing valves and automated-valves markets. The global reach, expertise in the Industrial Process business, and the shared, highly engineered approach to solving problems and creating value for our customers will allow us to move forward much faster and with a greater impact as part of ITT."
Published by Globes, Israel business news - en.globes.co.il - on April 5, 2022.
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