B.S. Technologies Acquires 75% Stake in Bar-El for $9.6 Million

B.S. Technologies (Beren) has finalized its acquisition of a controlling 75% stake in Bar-El, a company specializing in custom concrete product manufacturing, for 35 million shekels (approximately $9.6 million). The founder of Bar-El, Eli Bar-El, will retain the remaining 25% ownership.

The deal was structured based on Bar-El's 2025 earnings, reflecting a price-to-earnings multiple of approximately 9. In 2025, Bar-El reported a net profit of 5.2 million shekels, with B.S. Technologies' 75% share of this profit valued at around 3.9 million shekels against the 35 million shekel investment. This transaction values Bar-El at approximately 46.7 million shekels.

While Bar-El is smaller than B.S. Technologies, its profitability is notable. In 2025, the company generated 46.3 million shekels in revenue, with an operating profit of about 8.1 million shekels and a net profit of 5.2 million shekels, translating to an operating profit margin of roughly 17.5% and a net profit margin exceeding 11%. In contrast, B.S. Technologies experienced a decline in profitability in the second quarter, reporting a net loss despite a 16% increase in revenue to 212.6 million shekels. Its operating profit for the quarter was around 6 million shekels, less than 3% of revenue.

Bar-El, founded in 2019, manufactures concrete products such as communication and utility vaults, pipes, foundations for lighting poles, safe rooms, protective structures, and security solutions, including guard posts. The company operates from two leased sites in northern Israel, covering approximately 14 dunams (3.5 acres), and possesses two self-manufacturing concrete machines.

For B.S. Technologies, this acquisition integrates manufacturing capabilities into its existing project planning, management, and construction operations, particularly in infrastructure, protection, and security sectors. The strategic aim is to retain more work and profit within the group and establish a revenue stream from product sales, reducing reliance on project cycles. B.S. Technologies CEO Itzik Frank stated that the acquisition diversifies income sources and enhances their offerings to clients, with potential for synergy between Bar-El and other group activities.

The purchase occurs as B.S. Technologies holds a substantial project backlog of approximately 3.47 billion shekels. The company recently secured an 80 million shekel maintenance project in Israel and is advancing major international projects, primarily in Africa. B.S. Technologies also bolstered its capital this year, raising about 73 million shekels through a rights offering and subsequently issuing bonds, providing funding for expansion.