Baran Acquires 40% Stake in Ashkelon Desalination Plant Operator
Translated & summarized from Calcalist by baba
Infrastructure firm Baran is acquiring a 40% stake in Adom, the operator of the Ashkelon desalination plant, for NIS 53.6 million. The deal values Adom at NIS 134 million and is part of Baran's strategy to build income-generating assets. Baran and Adom's current owner, Veridis, are also jointly bidding to expand the plant's capacity and extend its operating concession. Adom reported a NIS 50 million profit in 2025.
The story in 6 lines · by baba
- Baran is acquiring a 40% stake in Adom, the operator of the Ashkelon desalination plant, for NIS 53.6 million.
- The deal values Adom at NIS 134 million, and the company reported a NIS 50 million profit in 2025.
- Baran and Veridis are jointly bidding to expand the Ashkelon plant's capacity and extend its operating concession.
- The acquisition aligns with Baran's strategy to build income-generating assets in infrastructure operations.
- Baran's CEO, Itzik Frank, announced his intention to resign.
- Baran is controlled by Avihai Stolero and founder Meir Dor and has a market cap of NIS 470 million.
Infrastructure company Baran is entering the desalination sector with the acquisition of a 40% stake in Adom, the operator of the Ashkelon desalination facility. The deal, valued at NIS 53.6 million, reflects a total valuation of NIS 134 million for Adom. Adom, which reported a net profit of NIS 50 million in 2025, has operated the facility under contract since 2023.
Baran is acquiring its stake from Veridis, owned by Gil Agmon. Alongside this purchase, Baran and Veridis are jointly bidding on a tender to expand the plant's capacity from 120 million cubic meters annually to 220 million cubic meters, and to extend its operating concession for an additional 25 years.
While Baran will not have voting rights in Adom, it will appoint one director and receive its share of the profits. Veridis will retain a 60% ownership. Baran also holds a right of first refusal should Veridis decide to sell its remaining shares.
This acquisition aligns with Baran's strategy to build income-generating assets, complementing its existing design and construction activities by investing in companies that provide ongoing operation and maintenance services for infrastructure. Omri Gelbart, Manager of Concessions Activity at Baran Group, stated that the deal fulfills the company's strategy of growth through income-generating assets and operations in areas of proven expertise, specifically citing water as a prime example. He added that Baran plans to continue seeking similar opportunities where its engineering knowledge can create value and profitability.
Baran, which has a market capitalization of NIS 470 million, is controlled by Avihai Stolero (31.4%) and founder Meir Dor (16%). The company's CEO, Itzik Frank, announced his intention to resign yesterday.
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