Investment Fund FIMI Offers to Buy Control of Struggling Robot Pool Cleaner Maker
Translated & summarized from Globes by baba
Investment fund FIMI has offered to acquire a 50% controlling stake in struggling robotic pool cleaner manufacturer Mitronics for NIS 200 million. The company, once a major success for Kibbutz Yizrael, has lost 97% of its value since its 2021 peak. FIMI's investment aims to inject capital, reduce the company's nearly NIS 600 million debt, and implement efficiency measures. Kibbutz members must decide whether to cede control to FIMI, hoping for a turnaround, or continue on their current path of significant losses.
The story in 6 lines · by baba
- FIMI offers to buy 50% of Mitronics for NIS 200 million, valuing the company at NIS 200 million.
- Mitronics, once valued at NIS 9.1 billion, has lost 97% of its market capitalization.
- The deal would dilute Kibbutz Yizrael's controlling stake from 56% to approximately 28%.
- Mitronics faces significant debt of nearly NIS 600 million and recent substantial losses.
- FIMI aims to stabilize the company through efficiency and then expand its operations.
- Kibbutz members must vote on relinquishing control to the investment fund.
Mitronics, a manufacturer of robotic swimming pool cleaners, is facing a potential takeover by the investment fund FIMI, led by Yishai Davidi. FIMI has submitted a non-binding offer to acquire a 50% stake in the company for approximately NIS 200 million, valuing the company at NIS 200 million before capital injection. This offer comes as Mitronics, once a major success story for the kibbutz industry, has experienced a dramatic decline in value, losing about 97% of its peak market capitalization. The company's shares, which once valued each of the approximately 300 members of Kibbutz Yizrael at nearly NIS 17 million on paper, now represent only about NIS 500,000 per member.
If the deal is completed, FIMI's investment will dilute Kibbutz Yizrael's controlling stake from 56% to around 28%. FIMI plans to invest an initial NIS 200 million, with options to invest an additional NIS 150 million over the next two years at higher valuations. The deal is expected to be finalized by the end of the year, pending due diligence and approvals from the kibbutz members and shareholders. The kibbutz's board, which approached FIMI several months ago, reportedly trusts the fund's track record in revitalizing distressed companies.
Mitronics, founded in 1983, saw its stock soar to a peak valuation of NIS 9.1 billion in 2021, driven by increased demand during the COVID-19 pandemic. However, post-pandemic, the company has suffered from declining revenues, increased competition from cheaper Chinese brands, rising interest rates, and unfavorable market conditions. In 2025, revenues were only about NIS 1.4 billion, with a net loss of NIS 222 million. The company's former CEO, Sharon Goldenberg, resigned in late 2025, and his successor, Rafi Ben Ami, has continued to face negative financial trends, with a NIS 34.5 million loss in the first half of 2026.
FIMI aims to stabilize Mitronics by stopping losses through efficiency measures and then focus on expanding and improving the company's operations. The investment fund has a history of acquiring struggling companies and successfully turning them around, such as its profitable divestment from Rivulis Irrigation in 2020. FIMI believes it can achieve a similar turnaround for Mitronics, citing the continued strength of its pool cleaning products in a growing global market.
Kibbutz Yizrael members now face a critical decision: relinquish control of the company in hopes that FIMI can restore Mitronics to profitability, or continue on their current independent path, which has led to significant financial losses and a drastic reduction in their holdings' value. The kibbutz's total holding has fallen from approximately NIS 5 billion at its peak to about NIS 141 million.
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