buy or sell?!

Purchased: A profitable company

MTI provides wireless communications solutions, antennas and security systems, and is traded at a market value of £ 20 million, which is about NIS 92 million In a report on the acquisition, MTI notes that the Australian company’s revenues for the year ended June 2018 were $ 1.5 million, A net profit before tax of $ 160,000 and a net cash of $ 270,000 in the company’s balance sheet, which MTI believes will increase its revenue and profit potential and create a platform for increasing recurring revenues from services and maintenance of water control systems.We are pleased with the acquisition that will immediately contribute to the company’s results and enable Mottech to step up the value chain in the Australian market and provide solutions and services in the field of wireless control,” said Moti CEO David Shani.MTI, headed by Chairman Zvi Borovich and CEO Moshe Borovich, completed a merger last year with its subsidiary, MATI Computers, which was traded on the Tel Aviv Stock Exchange and was delisted from the market following the move. As part of the merger, all of the subsidiary’s shares held by the parent company were transferred to the shareholders of the parent company pro-rata to their holdings in the Company’s shares. The company noted at the time that the merger reflects tangible benefits for the company and its shareholders, and increases efficiency and cost savings.Trax buys Shufikik for $ 200 million in cash

The developer of inventory management technology has acquired Shufikik, which develops a customer benefit platform. • Trask plans to increase its workforce in Israel from 250 to 350 employees in the coming yearSingapore-Israeli start-up Trax (Nasdaq: TRAX), which develops physical inventory management technology, has acquired US shopkick in a cash and stock deal. Market sources estimate that the value of the deal is $ 200 million, it is unclear how much was paid in cash and some shares. Which develops a customer benefits platform.Shufikik was owned by SK Planet, a subsidiary of SK Telecom, the Korean communications company that acquired Shupakik itself for $ 200 million in 2014.We as a company are fully digitizing for stores, brands and consumers, and this company gives us the touch of consumers.” A lot of the things we do today with image recognition technologies that we use in the store will enable Shofakik to continue working independently with consumers in the US, Feldheim, a co-founder of Trax, in a conversation with “Globes”.

According to him, 150 Shufik employees will continue to work in the United States as an independent group in Trax, which after the acquisition includes nearly 700 employees in 50 countries, most of them in Israel, San Francisco Singapore, Shanghai and Beijing. In Israel, Trax has about 250 employees, and plans to increase the team to 350 employees in the coming year, mainly in the field of computer vision and algorithmetics, says Feldheim.Income-producing real estate and cannabis: The controlling shareholder in Mega Or acquires control of Kanoomed for NIS 25 millionNahmias will buy the shares at a price of NIS 0.85 per share, a 15% discount on yesterday’s closing price. KanoMed is in the final stages of commercial operation of the Cannabis Growing FarmThe cannabis growing company announced today the signing of a memorandum of understanding for the allocation of 51% of its shares for NIS 25 million to Tzahi Nahmias, the controlling shareholder in the Mega Or income-producing real estate company.The largest shareholders in Canomad today are Revital Akab, Of the company’s share capital, and Flora Alfis, which holds 5%.

CanoMed is in the final stages of commercialization of the Cannabis breeding farm. The company’s share is up 18% on the Tel Aviv Stock Exchange today, after a 40% jump yesterday, and is traded at a market value of NIS 45 million (the share is on the TASE’s list).Mega Or, which is controlled by Nahmias (45%), has recently enjoyed a boom. Since the beginning of the year its share has risen 58% and the company’s value now stands at NIS 1.9 billion. Yesterday, the company reported an agreement for the sale of a logistic asset in Modi’in to vehicle importer Rami Unger for NIS 470 million – a price reflecting a future return of only 5% to the buyer. The deal is expected to give Mega a remarkable after-tax profit of NIS 116 million, after which the company has already benefited from a NIS 110 million profit from the Modi’in property.Nahmias will buy Kanomed shares by way of an allotment, at a price of NIS 0.85 per share – a 15% discount on the closing price yesterday (and about half the current value). In addition, it will receive options for Canomed shares to avoid future dilution at an exercise price of NIS 1.2 per share. Following the deal, the options entered “into the money,” since the share is currently traded at NIS 1.6, almost double the transaction price.

Nahmias holds Cannabis cultivation licensesThe deal revealed that this was not the first time that Nahmias was interested in cannabis. It turns out that he had a license to grow cannabis in greenhouses, a license to grow in a closed facility, and a commercial house for cannabis. In the event of completion of the transaction, these activities will be transferred to CanoMed, which evaluates them as of immaterial value.In this way, Nahmias converts a vague option for the cannabis sector into a more advanced stage, in exchange for a real investment in cash, which is not much higher than what he would probably have had if he had begun to exercise his licenses today.his investment comes after a previous deal at Canomed, in which Ran Blinkis, one of the founders of the AM-PM chain of supermarkets, was supposed to invest NIS 18 million in the company for 43% of the company. The price of the investment in the Blinkis deal, which fell, was also NIS 0.85 per share.Kawanomed is traded on the Tel Aviv Stock Exchange after merging with the stock exchange of Proteologics. It recently announced that it had reached the first planting stage in its cannabis farm in the Jordan Valley. Arriving at the first stage of planting – the “180 plants” stage, which the chief executive requires companies to plant for control before allowing the company to plant all of its territory means that the company will become commercial in a few months unless it can meet the quality or security requirements.

Kanoomed also signed an agreement with Agrocan Teva Adir – one of the eight cannabis companies operating in the Israeli market for a decade. Under the agreement, Agrucan Teva Adir will direct KanoMed professionally, and then purchase the entire product exclusively until the end of 2021, at a price of NIS 4.15-4.0 per gram.KanoMed said the company’s annual revenue is expected to range from NIS 12 million to NIS 15 million a year. Adir Nature will also supply the cuttings (sections of a branch, stalk or root that bears the original plant characteristics) approved by the Medical Unit for Medical Cannabis of the Ministry of Health, with a total area of ​​7.2 dunams, and is considering increasing it.Kanoomed was represented in the deal by attorneys Ilan Grazi and Aliza Gavison of Pearl Cohen Tzedek Latzer Baratz.The Yavneh pickles manufacturer on the way to acquire rival Benny DaromThe group of canned pickles will be built in advanced negotiations for the purchase of the sour pick maker Benny Darom. The annual sales of the Yavneh plant are NIS 92 million per year in terms of retail sales. If the deal is completed, it is expected to add NIS 28 million

Yavneh Group, Israel’s second-largest pickle maker, is on its way to buy the rival pick maker Benny Darom, “Globes” has learned. Yavneh Group is in advanced negotiations to buy the activity and brand from South Buildings, which is the third largest player in terms of quantitative sales and the fourth largest in terms of sales turnover for the retail market. known.Currently, the leader of the Hamamzim market is Beit Hashita, which is owned by the Osem-Nestle group, which holds 35% of its financial sales, which totaled NIS 134 million a year, according to StoreNext data. Yavneh Group, the buyer, is the second largest player in the market in terms of sales turnover, which totaled NIS 92 million in 2018, which constitutes 24% of sales in the category. In addition, it also produces a private label.Benny Darom, the acquired company, holds a 7.5% market share, making it the fourth largest player in terms of financial sales, but the third largest in volume with a market share of 10% of quantitative sales. Its financial sales in the retail market in 2018 totaled NIS 28 million.

And why is this important? In any event, we are talking about two out of the four big players in the pickles category, which may have implications for competition. The private label accounts for 8% of the financial sales in the category, and smaller players in the field, such as canned motele, Willi food, Perry Nir, Wissotzky and others.Yavneh Food Products Group is a kibbutz enterprise established more than 60 years ago in Kvutzat Yavne, the oldest religious kibbutz in the center of the country. The Yavneh pickles have been sold in the Israeli market for about three decades, but the plant itself has existed since the manufacture of canned meat for the British army in 1938.Yavneh Group markets, among other things, pickles, olives, tuna, pickled vegetables such as eggplant and peppers, tuna and olive oil, which it also sells at its direct sales site. The Company also operates a factory store where retail sales are conducted directly to the consumer.

The Kfar Darom factory was established in 1973 in the religious cooperative Bnei Darom. The plant mainly produces olives, pickled cucumbers, pickled vegetables such as pepper and eggplants, spreads, antipasti vegetables and olive oil. As a factory belonging to the Moshav Sharefati Dati, the factory holds most of its products under the supervision of Badatz HaEdah HaCharedit. The factory markets its produce in Israel and exports its products to the United States, Canada, Australia and Europe.n 2017, the prices of pickled cucumbers rose in price, due to claims that small pickles suitable for pickling and packing are reserved for the retail market. At the same time, we note that the price of cucumbers actually declined in May, apparently against the backdrop of the Yom Ha’Atzma’ut and Lag BaOmer campaigns, and in order to cope with the price increases and shortages, the Ministry of Economy began in 2017 to allow a quota of 4,000 tons. The consumption of pickled cucumbers in Israel amounts to more than twenty thousand tons per year.The transaction was completed: Chroma of Taiwan acquired 20% of Camtek for $ 74.3 millionChroma paid $ 58.1 million for 6.1 million Camtek shares it acquired from the company’s controlling shareholder, Preortech, and $ 16.2 million for 1.7 million new shares issued to it. In a statement today, the transaction was significantly strengthened, Financial strength without the need to raise capital or debt in the near future

The transaction was completed in which Chroma Ate of Taiwan acquired 20% of Camtek’s shares3,429 + 0.56%)(9.72 -0.82%) For $ 74.3 million. Chroma paid $ 58.1 million for some 6.1 million Camtek shares it acquired from the company’s controlling shareholder, PriorTech, and $ 16.2 million for 1.7 million new shares. Camtek’s share price is $ 9.5, 12.4% higher than the current price. Upon completion of the transaction, Chroma holds 20% of Camtek’s shares, and Protek holds 24%, compared with 41.9% previously.Camtek operates from Migdal Ha’Emek, and manufactures testing systems for the semiconductor industry. The company is traded on the Tel Aviv Stock Exchange and on the Tel Aviv Stock Exchange, with a market cap of $ 309 million, with a value of NIS 429 million. In addition to its holdings in Camtek, Paretech also holds shares in PCB Technologies, a complex PCB manufacturer whose control was sold to the FIMI fund at the end of 2017, as well as to Amitec, which supplies the substrates for the chip industry. In a statement published Wednesday, the deal said that the deal significantly strengthens Pryoretech’s financial base and ensures financial strength without the need to raise capital or debt in the near future. At the end of the first quarter, Puretech had cash and short-term deposits of NIS 22.2 million

Chroma, a manufacturer of high-precision testing systems, measuring instruments and testing, is traded on the Taiwan Stock Exchange and has a market cap of US $ 1.86 billion. Concurrent with the investment in Chroma, it was agreed that Camtek will allow the use of its 3D testing technology in return for royalties for non-semiconductor applications. In addition, the companies agreed to cooperate in potential projects in the semiconductor market. “We are pleased to have completed the Chroma transaction, which is of great importance to Camtek,” said Rafi Amit, PiraTech chairman and general manager of Camtek, “Chroma is a leading player in Taiwan and Asia, and this deal will enable Camtek to strengthen its presence in Asia.”The Chroma transaction is another step in Camtek’s process of focusing on the semiconductor market. In 2017, it sold its printed circuit operations to a Chinese fund for up to $ 35 million, then reached a compromise with rival Rudolph to end a patent infringement trial, and closed a business unit dealing with digital printers.

Will compete with Strauss and Gad: Tnuva acquires control of a chilled pasta manufacturerTnuva buys 51% of the pasta and sauces company Doro Italian Produce, which produces refrigerated pastas mainly for the institutional market, and has sales turnover of tens of millions of shekels. This is a category controlled by Tnuva’s competitors – Strauss and Gad, which together hold about 80% of the marketnuva acquires control (51%) of a chilled pasta manufacturer called Doro Italian Prodact for NIS 20 million, according to market estimates. This is a relatively small company that began to manufacture products for the retail market only a year ago, which markets its products under the pasta roco brand, and sells most of its activity to the institutional market (such as cafes and restaurants). According to Tnuva, the annual turnover of the acquired company amounts to tens of millions of shekels.

Tnuva did not officially specify the scope of the deal, but the scope of activity it details shows that it is not a material deal for it.The scope of the transaction is not known, but from the scope of activity that Tnuva specifies, it can be concluded that this is not a material transaction for it. Until a year and a half ago, Tnuva was the distributor of Nuna, another brand of chilled pasta whose sales are estimated at NIS 40 million a year. Tnuva notes that they intend to “expand their retail activity in the future by launching a line of chilled pasta products.”Doro Italian Prodact was founded in 2007 and until now was owned by partner Shai Alon and Gil Ben-Dov, who will now be left with 49% of the remaining shares. The company, which was established as a fresh pasta company, later expanded to produce pasta sauces, chilled spreads and fresh pizza dough. The company owns a production plant at the grain house employing 27 employees.As of today, the chilled pasta category is considered very small in terms of retail sales – a total of NIS 64 million per year, which constitutes a small percentage (about 7%) of the pasta market, according to StoreNext figures. Strauss, which holds a market share of 50%, has recently re-launched its chilled pasta under the brand “eat good”. Mula operates Gad, which markets the frozen pastas of Nuna and holds a market share of 30%. Shufersal and Rami Levy are also active in this category through their private label, and together they hold a market share of close to 20%. According to Storkcast data for November 2018.

Tnuva notes that the institutional market also has sales of tens of millions of shekels a year, so that the company relies mainly on the growth potential of the market and the ability to compete with the dominant players already operating in it.

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