CVC Buys 40% Stake in Fibrotex for Hundreds of Millions

International investment fund CVC is acquiring a 40% stake in Fibrotex, a company specializing in military camouflage systems, from the owning Bloom family. The deal is valued between $350 million and $450 million, potentially valuing Fibrotex at approximately $1.1 billion. The Bloom family, which currently holds full ownership, will retain a 60% controlling stake. This transaction represents a significant exit for the family business, founded in the 1960s and now a global leader in military camouflage.

The deal was facilitated by CVC's Catalyst 3 fund and involved months of negotiations led by investment bank Jefferies. While other funds and strategic entities expressed interest, the Bloom family prioritized maintaining control. CVC has secured an option to purchase the remaining shares within the next four years should the family decide to sell.

Fibrotex, led by CEO Adi Bloom, produces advanced camouflage solutions designed to evade detection by thermal cameras, night vision devices, and radar. Its products are utilized by militaries in over 20 countries, with the U.S. Army being a primary customer. Since 2018, Fibrotex has secured over $500 million in cumulative orders from the U.S. military. The company's projected revenues for 2025 are between $130 million and $150 million, with tens of millions in operating cash flow, and further growth is anticipated due to new contracts and increased demand.

The valuation of Fibrotex implies a price-to-sales multiple of approximately 7-8.5, reflecting expectations of continued expansion. The Bloom family also has other defense-related business interests. Martin Bloom, an owner of Fibrotex and father of Adi, is the brother of Daniel Bloom, the controlling shareholder of publicly traded FMS, which manufactures ballistic protection materials like body armor and vehicle armor.

FMS reported revenues of approximately 387 million shekels and a net profit of 133 million shekels in 2025. Despite FMS's similar annual sales volume to Fibrotex, its market capitalization is significantly lower. The Fibrotex acquisition occurs amidst a downturn in defense stocks on the Tel Aviv Stock Exchange, yet investment funds continue to seek companies with unique military advantages. The increasing use of drones and surveillance technology, coupled with rising defense budgets in Europe, is driving demand for advanced camouflage systems. CVC plans to support Fibrotex's expansion in the U.S., Europe, and Asia. The transaction is subject to regulatory approval and is expected to close in the first half of 2027.