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Elbit wins battle for Israel’s IMI
Posted on Monday, 12 March 2018 10:00
Israel’s Finance Ministry has confirmed it is selling defence equipment manufacturer IMI Systems to domestic rival Elbit Systems after initially announcing its plans to privatise the firm back in 2013.
Although the rumoured buyer is yet to respond to the state’s press release, it is expected to shell out ILS 1.80 billion (USD 522.15 million) for the Uzi-maker.
An additional ILS 100.00 million earn-out consideration could be payable, dependent on certain unspecified conditions, which Reuters reported could include the target’s results.
The news provider claimed the deal, which will be subject to antitrust approval, would make Elbit the country’s largest defence contractor, pushing Israel Aerospace Industries into second place.
IMI was founded in 1933 as an exclusive provider of arms to the Haganah forces prior to the establishment of the state and has since become “a key factor in preserving the IDF’s [Israeli Defence Force’s] independence”, according to its website.
The Hasharon-headquartered company develops and manufactures weaponry and technology for modern battlefields, including flares, grenade, tanks, ammunition, bombs, and rocket motors for missiles.
It posted sales of USD 628.00 million in 2016, the majority of which were made in Israel and its 3,200 employees serve the homeland security, armour, naval, air, and infantry industries.
Elbit supplies a portfolio of air, land, and naval products, including advanced electronics technologies and electro-optic systems.
The acquiror reported net income of USD 169.70 million and revenue of USD 2.37 billion for the nine months ending 30th September 2017.
Sales in Israel during the timeframe reached USD 509.30 million, accounting for 21.5 per cent of the group’s total.
As of 30th September 2017, Elbit had assets of USD 4.69 billion.
Based in Haifa, the listed company’s stock increased by 5.7 per cent on the back of the news, closing at ILD 497.00 and giving a market capitalisation of ILS 21.25 billion yesterday.
© Zephus Ltd