Manor Evergreen Acquires Half of Israeli Nursing Firm Natan Ahead of Potential IPO
The Israeli nursing sector has attracted significant investment interest from leading local financial entities in recent years, driven by demographic trends and growing demand for home care and mental health services. Manor Evergreen, an investment fund managed by Dr. Avi Ortal, Yuval Zeira, and Lilach Katz, recently signed an agreement to acquire 50% of the family-owned nursing company Natan, controlled by Zvika and Miri Natan, for 180 million shekels. This deal is seen as a preparatory step toward a possible initial public offering (IPO) on the Tel Aviv Stock Exchange in the coming years.
Founded in 1988, Natan is the fourth-largest player in Israel's nursing market, employing 18,000 caregivers who provide home nursing, mental health services including assisted living and psychiatric care, and medical rehabilitation such as cardiac recovery and physiotherapy. The company reportedly generates annual revenues of approximately 800 million shekels with profits around 40 million shekels. Manor Evergreen will also inject an additional 20 million shekels into Natan to support its growth, which is expected to include acquisitions of smaller companies to complement organic expansion.
Natan would join three publicly traded nursing companies in Israel: Danal, Amel Holdings, and Tigbur. These companies benefit from Israel's aging population and the medical community's recommendation to keep elderly patients at home, fueling demand for home nursing services. The home nursing market is estimated to generate about 21 billion shekels annually.
Danal, Israel's oldest nursing company, is controlled by Universal Motors Imports (UMI) and has recovered from a crisis that saw a 60% stock collapse, now valued at nearly 2.7 billion shekels with recent revenue growth and profitability. Amel Holdings, listed last year with a valuation of about 2.6 billion shekels, experienced a slight stock decline amid new National Insurance Institute (NII) tender changes expected to reduce profit margins. Tigbur, controlled by the Benbenishti family, has seen its stock nearly double in value over three years, now worth approximately 645 million shekels.
The NII, which funds most home nursing services, launched a new tender last year adjusting reimbursement rates due to concerns over inflated profits and service quality disparities, especially affecting peripheral regions. According to a 2019 Ernst & Young report, these practices cost the state at least 400 million shekels annually. The new tender, effective from early 2027, is expected to reduce operating profits for companies like Danal and Amel by tens of millions of shekels. However, industry insiders note that the sector is less affected by technological changes, allowing larger companies to leverage their scale for continued growth, potentially accelerating consolidation as smaller firms face challenges under the new tender terms.
