Ackerstein Sells US Operations for $30 Million Amid Losses
Translated & summarized from Bizportal by baba
The story in 5 lines · by baba
- Ackerstein Group will sell its US industrial operations for $30 million.
- The US division has incurred significant operating losses over the past three years.
- A portion of the sale proceeds is contingent on renewing a California factory permit.
- The sale represents a strategic reversal from previous growth plans for the US market.
- Ackerstein plans to use the funds to bolster its financial position and invest in Israel.
Ackerstein Group has signed a binding memorandum of understanding to sell its entire industrial operations in the United States to an undisclosed American corporation for $30 million (approximately 90 million shekels). This move marks a significant reversal from the company's previous strategy, which highlighted the US operations as a potential growth engine, even mentioning prospects related to the 2028 Los Angeles Olympics.
The sale concludes Ackerstein's presence in the US, which began in the late 1980s. The US division has been a consistent source of losses, accumulating approximately 67 million shekels in operating losses over the past three years. In 2023, the operating loss was about 31.9 million shekels, followed by 19.1 million shekels in 2024, and 16.3 million shekels in 2025. The company's EBITDA in the US has also been negative, reaching a loss of $2.7 million on revenues of about $13 million in 2025.
Despite the losses, the sale price of $30 million is considered respectable for an industrial concrete products business facing no growth and operating at a deficit. The price reflects approximately 2.3 times the revenue for a business that has been losing money for years. Ackerstein will receive cash and stop the ongoing financial drain from these operations.
However, a significant portion of the sale proceeds, $10 million, will be held in escrow. This amount will only be released after the renewal of the operating permit for the California factory. The buyer will also deposit $3 million within three business days, which could be returned to them under certain conditions, such as Ackerstein's breach of contract or failure to meet deal terms.
The sale comes during a period of management change for Ackerstein, with former CEO Amit Lang departing after only eight months, leading Tzviקה Ackerstein to resume leadership. The company's stock has fallen about 33% since the beginning of the year, reflecting weaker financial results. Ackerstein intends to use the sale proceeds to strengthen its financial standing and fund further expansion and acquisitions in Israel, focusing on major infrastructure projects like the metro.
The deal is still subject to due diligence, regulatory approvals, and third-party consents. The memorandum of understanding includes a six-week exclusivity period for the buyer to conduct due diligence and finalize a detailed agreement.
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