Kibbutz Yizrael Relinquishes Control of Mitrionics as Pimi Fund Considers Takeover
Kibbutz Yizrael has decided to give up control of Mitrionics, the robotic pool cleaning company that once made its members paper multi-millionaires. Mitrionics is currently seeking an investment of approximately 300 million shekels and is holding talks with financial and strategic investors, primarily the Pimi fund, which believes it can revive the company. The goal is to complete the deal by the end of the third quarter. The company values itself at around 300 million shekels pre-money, about 60% higher than its current stock market valuation. An investor putting in this amount would receive roughly 51% of the shares, diluting existing shareholders, including the kibbutz, which currently holds 56%. If the deal proceeds, the kibbutz’s stake would drop to 28%, resulting in loss of control unless a joint control agreement is reached.
Mitrionics plans to use the investment to reduce its bank debt of about 600 million shekels and to relocate production to lower-cost countries such as those in East Asia, India, China, or even the US, where most sales occur and tax incentives have recently been granted. The company closed one factory in Dalton and now operates only the plant in Kibbutz Yizrael. Despite meetings with leading Israeli investment funds, most declined to invest, except Pimi, managed by Yishai Davidi, which continues negotiations. A foreign player has also shown interest.
At its peak in 2021, Mitrionics was valued at 9.1 billion shekels, making each of the kibbutz’s 300 members worth about 17 million shekels on paper. Today, that value has plummeted to around 300,000 shekels per member. Over the years, the kibbutz received hundreds of millions in dividends during profitable periods. The company, led by CEO Rafi Ben Ami since early 2023, specializes in robotic pool cleaners and related safety products, with most sales occurring in the first half of the year.
Mitrionics experienced rapid growth from 2010 to 2019, increasing market share to 50% globally and maintaining stable profitability. However, after the COVID-19 pandemic surge, sales sharply declined due to excess inventory, fierce competition from cheaper Chinese robots, and rising costs. The company only launched a low-cost robot in 2024. The ongoing war in Ukraine also affected operations, with employees called to reserve duty and production disruptions.
In 2025, Mitrionics reported a massive loss of 222 million shekels, down from a 31 million shekel loss in 2024, with equity falling to 427 million shekels. Revenues dropped to 1.4 billion shekels from 1.62 billion, mainly due to an 18% decline in private pool sales amid price cuts and currency fluctuations. The company’s strategic plan includes moving production abroad, boosting online sales, and possibly issuing bonds for the first time. The entry of an investor like Pimi could be a lifeline for both the company and the kibbutz members.
