Fortissimo Sells Ketzat Pharmaceuticals to Dexel Pharma for NIS 250 Million
After several months of negotiations, Fortissimo Fund has sold Ketzat Pharmaceuticals' drug division to Dexel Pharma for approximately NIS 250 million. The deal covers Ketzat's core pharmaceutical operations, while its other business segments will be sold separately in the future. Fortissimo, led by Yuval Cohen, acquired an 80% stake in Ketzat four years ago for NIS 187 million. Sigal First, holding the remaining 20% and a member of the founding family, is also participating in the sale but declined to comment.
The transaction excludes Ketzat's real estate in Kiryat Malachi and its 2023 acquisition, Flourish, a food, dietary supplements, and cosmetics producer known for brands like Hizukit and Regaion. Ketzat's agricultural products division will also remain with the company. Although Ketzat's factory will continue producing drugs for Dexel for several years, some employees have expressed concerns about potential future closure and production transfer.
Dexel Pharma, owned by Dan Oren and managed by his sons Ilan and Uri Oren, operates three sites in Israel, with a significant portion of its products being generics. The sale may indicate Fortissimo's strategic exit from pharmaceuticals, focusing instead on other medical device sectors where it holds companies like Renium and Totnaor. Ketzat, founded in 1975 by Meir Cohen, produces over 100 pharmaceutical products and also markets products under agreements with international firms. It employs around 400 workers across facilities in Kiryat Malachi, Misgav Yitzhak, and Kiryat Ata.
Previously, Ketzat had advanced talks to acquire Terima Pharmaceuticals but withdrew, with Terima now potentially being sold to Rafa of Fimi. Dexel markets major brands in Israel, including Pfizer's Viagra and Mylan's EpiPen. Fortissimo's CEO Yuval Cohen had previously emphasized the importance of pharmaceuticals and agriculture in the fund's growth strategy, but this sale marks a shift away from the pharmaceutical sector.
