Kibbutz Yizrael Faces Loss of Control as Mitronix Value Plummets Amid Sale Talks

Mitronix, the robotic pool cleaner company founded and developed by Kibbutz Yizrael, is undergoing a severe crisis after years of success. The company, once valued at around 9 billion shekels and considered the kibbutz's most valuable asset, has seen its market value collapse to under 300 million shekels. This dramatic decline has led to ongoing talks about transferring control to the investment fund FIMI, which specializes in industrial company turnarounds.

Mitronix was established in 1983 after a kibbutz member discovered robotic pool cleaning technology in South Africa. The kibbutz acquired and developed the product, eventually taking the company public in 2004. At its peak, each of the kibbutz's 300 members held shares worth an average of 17 million shekels on paper. The company grew rapidly, especially during the COVID-19 pandemic, when demand for home maintenance products surged, pushing Mitronix to capture over half the global market and reach a peak valuation of 9.1 billion shekels in 2021.

However, post-pandemic market shifts, increased competition from Chinese manufacturers, and changes in consumer behavior led to a sharp downturn. Mitronix's revenues fell from 1.9 billion shekels in 2023 to 1.4 billion in 2025, with losses mounting to 228 million shekels due to inventory write-downs and asset impairments. The stock price has dropped 97% from its peak, despite a recent temporary rise amid sale negotiations.

Leadership changes accompanied the decline, with CEO Sharon Goldenberg stepping down in 2025 and replaced by Rafi Ben Ami. The kibbutz community is grappling with the financial and emotional impact, with some members expressing regret over missed questions and decisions during the company's growth years. Despite the crisis, the kibbutz maintains financial reserves to cushion the blow.

FIMI's potential investment, if finalized, would inject several hundred million shekels to help manage Mitronix's 600 million shekel debt and stabilize its balance sheet. This deal would likely result in Kibbutz Yizrael losing control of the company it founded. The Kibbutz Movement secretary-general, Lior Simcha, emphasized the importance of timely strategic decisions and acknowledged the difficulty of the current situation. Mitronix and the kibbutz declined to comment on the ongoing developments.