CVC Capital Partners Buys 40% Stake in Fibrotex for $350 Million

Investment fund CVC Capital Partners is acquiring a 40% stake in Fibrotex, a company based in Petah Tikva, Israel. The acquisition is being made through CVC's Catalyst 3 fund, according to unofficial sources. Fibrotex operates in the defense industry, a sector that has seen a decline in valuations recently.

The Blum family, the current sole owners of Fibrotex, will sell their shares for approximately $350 million. They will retain a 60% controlling stake in the company. The negotiations, which lasted for many months, were led by the investment bank Jefferies, headed by Nati Ginor. Initial discussions to bring in a partner began in April and were previously reported.

Fibrotex specializes in developing, manufacturing, and implementing advanced camouflage technologies for military forces, special units, and police organizations. Their systems are designed for multi-spectral camouflage, concealing personnel, facilities, and vehicles from visual, thermal, night vision, radar, and other advanced detection methods. Products include camouflage systems for tanks, armored personnel carriers, and command posts, as well as thermal-masking materials, electromagnetic radiation-absorbing sheets, personal camouflage suits, and specialized clothing for elite units.

Market estimates suggest Fibrotex's 2025 revenues will be between $130 million and $150 million, with tens of millions of dollars in operating cash flow (EBITDA). The company anticipates significantly better results for 2026 compared to 2025. The majority of Fibrotex's sales are to the U.S. military.

Meitar Law Offices, represented by Dan Shamgar, Dana Yagur, and Daniel Haltuv, advised on the deal. Gornitzky & Co. and Freshfields Bruckhaus Deringer Germany represented the fund.