Akerstein Exits US Operations After 38 Years

Israeli company Akerstein is divesting its operations in the United States after 38 years, having signed a binding memorandum of understanding to sell the business for approximately 90 million shekels (about $30 million). The buyer is an unnamed American company specializing in interlocking stones and environmental development solutions. This move marks one of the initial actions by Zvika Akerstein, who was appointed CEO on August 27, succeeding Amit Lang. The strategic decision aims to refocus the company on its Israeli activities and to exit the loss-making US operations, which have been negatively impacting its overall financial results.

Akerstein operates three factories in the US, located in California and Arizona, through its subsidiaries Aker Stone (Los Angeles area) and Aker Stone Arizona. These facilities produce and market interlocking stones, paving and cladding tiles, garden and curb stones, steps, and complementary products. In 2024, the company acquired a facility in Ajo, Arizona, for $2.4 million, while its other sites in Chandler, Arizona, and Corona, California, were established by Akerstein. Despite reporting optimism about potential expansion in its 2026 financial statements, the US division has consistently incurred losses.

In the first half of 2026, US operations generated $7.13 million in revenue, a 6.9% increase in dollar terms compared to the same period in 2025, though this represented a 2.35 million shekel decrease in shekel terms. However, the operating loss widened to $9.3 million from $8.8 million year-over-year, with negative EBITDA of $6.3 million. The company had recently appointed new CEOs and presidents for its US subsidiary in an effort to curb these losses. The US market's challenges include intense competition, high transportation costs, and sensitivity to the American economy, construction starts, and project progress.

Production capacity utilization in the US dropped from 28% in 2024 to 21% in 2025. Akerstein, currently valued at 1.7 billion shekels, has seen its stock price decline by 35.5% in the last three months and 32% year-to-date. The Akerstein family, including father Giora, son Zvika, daughters Karin Klier and Maya Lipin, and mother Stephanie, collectively holds about 68% of the company's shares.