Baran Group Acquires Stake in Desalination Plant Amid CEO Departure
Translated & summarized from Ice by baba
Baran Group is acquiring a 40% stake in Adom, operator of a major Israeli desalination plant, for 53.6 million shekels. The deal, which aims to build income-generating assets, comes just after the departure of long-time CEO Itzik Frank. Baran and its partner Veridis are also bidding to expand the Ashkelon facility's capacity and extend its concession. The company, founded in 1979, is a leading Israeli engineering and project management group.
The story in 5 lines · by baba
- Baran Group is acquiring 40% of Adom, a major Israeli desalination plant operator, for 53.6 million shekels.
- The acquisition is part of Baran's strategy to build income-generating assets in essential infrastructure.
- Baran and partner Veridis are also bidding to expand the Ashkelon desalination plant's capacity.
- The deal was announced shortly after the departure of CEO Itzik Frank.
- Baran Group is a leading Israeli engineering and project management company founded in 1979.
Baran Group announced Monday it has signed an agreement to purchase 40% of the shares in Adom (Ashkelon Desalination) Ltd. for 53.6 million shekels. Adom operates one of Israel's largest desalination facilities. The shares are being acquired from Veridis Water Desalination Ltd., which currently holds full ownership of Adom. Upon completion of the deal, pending regulatory approval, Veridis will retain 60% ownership and Baran will hold 40%.
This acquisition is a key step in Baran's strategy to build income-generating assets alongside its planning and construction activities. By investing in an active company that provides essential national infrastructure services, Baran is adding revenue from operations and maintenance to its existing planning, engineering, and execution capabilities, deepening its involvement across the entire lifecycle of infrastructure projects.
Simultaneously, Baran and Veridis are jointly bidding on a tender to upgrade, expand, and operate the Ashkelon desalination facility. The tender includes increasing production capacity from approximately 120 million cubic meters per year to 220 million cubic meters, along with operating the facility for an additional 25-year concession period.
Omri Gelbart, Director of Concessions Operations at Baran Group, stated, "The Adom deal is a direct realization of our strategy: growth through income-generating assets, operations, and maintenance in areas where we have proven expertise. The water sector is a prime example of this: after years of planning and constructing water infrastructure in Israel and globally, we are now adding the ongoing operation of one of the country's largest desalination plants. We will continue to explore similar opportunities where our engineering knowledge generates value and profitability."
The significant transaction by Baran Group follows closely on the heels of the announcement of CEO Itzik Frank's departure after more than five years leading the company and over 20 years with the firm. Frank's exit occurs at a particularly strategic time for Baran, which has been expanding its business operations through acquisitions and entry into major projects in its core fields. Under Frank's leadership, the group focused on establishing and deepening its presence in national infrastructure, the energy sector, and complex, knowledge-intensive engineering projects, while maintaining a broad global footprint. Baran Group, founded in 1979 by Meir Dor and a group of engineers, is one of Israel's leading engineering, project management, and integration groups, and its shares are traded on the Tel Aviv Stock Exchange.
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