Rimon Infrastructure Company Surpasses Tnuva in Value, Worth Over 2 Billion Shekels to Kibbutz Cooperative
Founded in 1997 by Yossi Almellem, Rimon Consulting Services began as a small venture but has grown into a leading Israeli infrastructure company specializing in underground projects and private water supply. Today, it is publicly traded on the Tel Aviv Stock Exchange with a market capitalization of 5.7 billion shekels. Almellem, who holds 14% of the company, has seen his stake valued at around 800 million shekels, having sold shares worth about 100 million shekels in the past year and received dividends exceeding 100 million shekels over time.
The biggest beneficiary of Rimon's recent stock surge is the agricultural cooperative "Granot," owned by 43 kibbutzim and moshavim between Haifa and Tel Aviv. Granot holds 37% of Rimon's shares, now valued at approximately 2.1 billion shekels, making it likely their most profitable investment, surpassing their historic 7% stake in the dairy giant Tnuva, valued near one billion shekels. Granot initially invested a modest 5 million shekels in 2006 and later increased its holdings, benefiting from dividends and significant appreciation.
Rimon's stock was initially stagnant after its 2021 IPO at a valuation of 1.25 billion shekels, but in the last two years, it has soared 375%, entering the TA-125 and TA-90 indices. This growth followed strategic acquisitions of six companies and plans for further expansion, boosting revenues from nearly 300 million shekels in 2021 to almost 1.5 billion shekels last year, with net profits rising from 29 million to 66 million shekels.
Operating in 13 countries with over 740 employees, Rimon is active in infrastructure, water and environmental quality, energy and gas, and global operations. Recently, it entered the data center cooling market by acquiring 50% of Pach Taas for 80 million shekels. This week, Pach Taas secured a $17 million contract to supply cooling systems to a Pennsylvania data center, marking Rimon's entry into the U.S. data center sector with potential for significant growth.
Institutional investors have also increased their stakes, with Clal Insurance acquiring about 8% of Rimon for 400 million shekels in a private placement. Despite a high price-to-earnings ratio of 86, CEO Almellem explains that heavy recent investments in equipment and infrastructure for future growth justify the valuation. Rimon aims to participate in major upcoming Israeli infrastructure projects, including the 180 billion shekel metro project and expansions in desalination and green energy, currently holding an order backlog of 3 billion shekels, up from 950 million at IPO.
