Hi-Lift Acquires 75% of Skyline Cranes for $72 Million

Hi-Lift, a company specializing in construction site equipment, has acquired a 75% stake in Skyline Cranes for NIS 270 million (approximately $72 million). The deal, which was finalized with businessman Boruch Perens, a co-founder of Skyline, marks Hi-Lift's entry into the tower crane sector and expands its existing operations in material hoists, hoist towers, and mast climbing platforms.

A significant portion of the acquisition, about NIS 200 million (approximately $53 million), will be financed through debt, with Bank Hapoalim providing the loan. The remaining funds will come from Hi-Lift's other sources. The valuation of Skyline has been subject to some discrepancy, with the 75% stake purchase implying a total company valuation of NIS 360 million, while the companies announced a valuation of around NIS 340 million.

Concurrently, Hi-Lift has seen a change in its ownership structure, with an institutional body acquiring a 20% stake. The identity of this investor, the investment amount, and the valuation at which the transaction occurred have not been disclosed, nor is it clear if this represents a capital injection or a purchase from existing shareholders.

Skyline Cranes, founded by Boruch Perens, Guy Perens, and Aviv Carmel, operates in the tower crane and lifting equipment sector for construction and infrastructure projects. Following the acquisition, Hi-Lift will assume control, though Boruch Perens, Guy Perens, and Aviv Carmel are expected to continue in advisory roles. Yaron Zaltzberg, founder and CEO of Hi-Lift, will become the chairman of Skyline. The companies stated that Skyline will continue to operate as a separate entity, maintaining its employees, management, and business focus.

For Hi-Lift, this acquisition allows it to offer a more comprehensive range of equipment to contractors and developers, combining its existing services with Skyline's tower crane solutions. Hi-Lift plans to continue investing in equipment, technology, and services, aiming to increase its exposure to the construction sector's activity cycle. The company will now operate with a broader range of construction site equipment but also with new, significant debt to finance the deal.