FIMI Opportunity Funds has completed the acquisition of a controlling stake in Ashot Ashkelon Industries Ltd. (TASE:ASHO) from Elbit Systems Ltd. (Nasdaq: ESLT; TASE:ESLT)./ As part of the deal, FIMI has paid Elbit Systems $84 million (NIS 291 million) for an 85% stake in the company.
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Ashot manufactures jet engine shafts, transmissions, gears and gearboxes, landing gear components and tungsten products for the aerospace and defense industries.
FIMI Opportunity Funds founder and CEO Ishay Davidi said, “Ashot operates in the aerospace and defense industry and stands in the forefront of Israel’s defense industry. The combination of FIMI’s experience in enhancing companies with the major knowhow of Ashot’s management and employees will in our estimation lead to realizing the company’s major growth potential and expanded global deployment.”
The deal was completed at NIS 14.50 per share, reflecting a company valuation of NIS 343 million. Ashot’s share price is currently NIS 16.40, reflecting a valuation of NIS 387 million, considerably higher than when the deal was signed in October 2021.
Elbit Systems gained control of Ashot Ashkelon three years ago when it acquired IMI Systems from the state for NIS 1.8 billion. In April 2020, Elbit Systems attempted to buy the remaining 15% in the company at a company valuation of NIS 283 million and delist it from the TASE. But the minority shareholders did not accept the offer.
Elbit Systems President & CEO Bezhalel Machlis said, “This sale is consistent with our strategy to focus on our core areas of business. Since the acquisition of IMI by Elbit Systems, Ashot has improved its business focus and operational efficiency. We look forward to continuing our cooperative work with both Ashot and FIMI.”
Since its establishment in 1996 FIMI has completed 99 investments, executed 65 exits worth more than $5.5 billion, and raised seven funds.
Published by Globes, Israel business news – en.globes.co.il – on June 30, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
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