Keter Plastic files for NYSE IPO

Keter factory in Karmiel  credit: Keter

The Israeli house and garden plastic products company seeks a valuation of $2-2.5 billion.

Israeli house and garden plastic products company Keter Plastic plans an IPO on the New York Stock Exchange. The company will attempt to raise hundreds of millions of dollars at a valuation of $2-2.5 billion, depending on market conditions at the time of the offering.

Keter has filed an initial draft prospectus with the US Securities and Exchange Commission. Among the underwriters for the offering will be Goldman Sachs, Jefferies, JP Morgan, and Bank of America.

The Keter group is considered a world leader in plastic garden furniture, garden sheds, toolboxes, and plastic products for the home. Keter's innovation and development center is located in Israel, as are nine of its twenty factories. The company employs about 5,000 people worldwide (2,000 of them in Israel) and is active in 100 countries. It plans to construct two more factories in Israel in the coming year.

The draft prospectus shows that the company had revenue of €444 million in the second quarter of this year, 25% more than in in the corresponding quarter of 2020. Quarterly operating profit grew 32% to €26 million, and the company posted a net loss for the quarter of €5 million.

Keter was founded in 1948 by Joseph Sagol as a manufacturer of toys and home utensils. In the 1980s, ownership passed to Sagol's sons Sami and Itzhak Sagol. In 2016, the brothers sold control of Keter (80%) to private equity firm BC Partners for €1.4 billion. The Sagol family retains a 20% stake. The acquisition was a leveraged deal, and the large bank loan weighed on the company.

Published by Globes, Israel business news - en.globes.co.il - on September 19, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Keter factory in Karmiel  credit: Keter
Keter factory in Karmiel credit: Keter
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