FIMI Fund Advances to Acquire Control of Pool Robot Maker Maytronics
Translated & summarized from Calcalist by baba
FIMI Fund has submitted an offer to acquire a 50% stake in Maytronics, a pool robot manufacturer from Kibbutz Yizrael, for NIS 200 million. The deal values the company at NIS 200 million, significantly down from its 2021 peak valuation of NIS 9.1 billion. Maytronics has granted FIMI exclusive negotiation rights for 60 days, with the transaction subject to shareholder approval. The kibbutz, which previously held shares worth NIS 17 million per member, now sees those holdings valued at NIS 300,000 each.
The story in 6 lines · by baba
- FIMI Fund offers NIS 200 million for a 50% controlling stake in pool robot maker Maytronics.
- The deal values Maytronics at NIS 200 million, a sharp decline from its 2021 peak of NIS 9.1 billion.
- Kibbutz Yizrael's 300 members face a drastic reduction in their share value from NIS 17 million to NIS 300,000 each.
- FIMI Fund seeks options for further investments in Maytronics through 2028.
- Maytronics granted FIMI exclusive negotiation rights for 60 days, extendable to December 31.
- The transaction requires approval from Maytronics' shareholders.
FIMI Fund is moving forward with an offer to acquire control of Maytronics, a manufacturer of pool cleaning robots owned by Kibbutz Yizrael. The fund, managed by Yishai Davidi, submitted a proposal to purchase 50% of the company's shares by injecting NIS 200 million into its coffers. This offer values Maytronics at NIS 200 million pre-money, lower than initial estimates that placed the deal at NIS 300 million. A memorandum of understanding has been signed, which would dilute current shareholders by half, leaving the kibbutz with a 28% stake.
FIMI's interest in Maytronics was first reported on August 17. Following preliminary due diligence, the fund submitted its offer. The proposed terms allocate shares to FIMI at NIS 1,821 per share, a 7% discount to the current stock market price. Additionally, FIMI seeks an option to invest another NIS 50 million by the end of 2027 at a NIS 250 million valuation, and an additional NIS 100 million by the end of 2028 at a NIS 300 million valuation.
Maytronics has granted FIMI exclusive negotiation rights for 60 days to conduct due diligence and finalize a binding agreement, with an automatic extension until December 31. The company has established an independent committee to manage negotiations, and the deal's completion is contingent upon shareholder approval. This potential acquisition follows a significant decline in Maytronics' valuation. The company peaked in 2021, trading at NIS 9.1 billion, with each of Kibbutz Yizrael's 300 members holding shares worth NIS 17 million. Currently, each member's holdings are valued at only NIS 300,000. However, the kibbutz has received hundreds of millions of shekels in dividends over the years from the company's profitable periods.
