Fortissimo Negotiates $400 Million Deal to Acquire RGIS Israel from Blackstone
Fortissimo, one of Israel's leading private equity funds, is in advanced talks to acquire control of RGIS's operations in Israel and several other countries from Blackstone, the world's largest alternative asset manager. The deal values the company at approximately $400 million. RGIS, founded in 1958 in Michigan, is a global leader in inventory counting services, operating in 66 countries with around 3,500 clients. In Israel, RGIS operates through Aisics-RGIS, headquartered in Rishon Lezion, providing inventory services to retail chains, food importers, pharmacies, hospitals, and industrial plants.
Blackstone acquired RGIS in 2006 for an estimated $1.5 billion and expanded its global footprint to over 60 countries. After nearly 20 years of ownership, Blackstone began divesting parts of RGIS, including selling its North American operations in 2021 to WIS International and acquiring a majority stake in the European group Ivalis. RGIS now focuses on markets outside North America, including Europe, Asia-Pacific, and the Mediterranean basin.
Fortissimo, managed by Yuval Cohen, has raised $2.7 billion across six funds and holds investments in various sectors, including healthcare, technology, and industry. The fund notably controls the Israeli cellular company Cellcom and recently sold a majority stake in Priority Software to Blackstone for $800 million in May 2024. This potential RGIS acquisition would be Fortissimo's second major transaction involving Blackstone.
RGIS employs thousands worldwide who perform inventory counts in stores, warehouses, and logistics centers, utilizing proprietary scanning technologies. The Israeli subsidiary is fully owned by the international company, with Asaf Cohen serving as the local managing director. Blackstone opened its Israeli office in 2021, appointing Yifat Oron as CEO, marking Priority Software as its first significant Israeli investment since establishing a local presence.
If completed, the acquisition will further Fortissimo's footprint in the inventory management and logistics sector, while Blackstone continues to streamline its portfolio amid challenges in North American profitability due to rising labor costs and competition.
