developing· Economy· Updated
Baran Acquires Stake in Desalination Operator Amid CEO Departure
The infrastructure and engineering firm Baran Group announced on Monday, October 19, 2026, that it is acquiring a 40% stake in Adom, the operator of the Ashkelon desalination plant, for approximately NIS 53.6 million. Baran is purchasing the stake from Veridis, which will retain a 60% ownership in Adom. The acquisition is part of Baran's strategy to expand into income-generating assets in essential infrastructure.
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What happened
- 01Baran Group is acquiring a 40% stake in Ashkelon desalination plant operator Adom from Veridis for NIS 53.6 million.
- 02The acquisition aligns with Baran's strategy to build income-generating assets alongside its engineering and construction activities.
- 03Adom reported a net profit of NIS 50 million in 2025, but its operating concession is set to expire in May 2027.
- 04Baran and Veridis are jointly bidding on a NIS 1.5 billion tender to expand the Ashkelon plant's capacity and extend its concession.
- 05The tender aims to increase the facility's annual production capacity from 120 million cubic meters to 220 million cubic meters.
- 06Baran's long-time CEO, Yitzhak Frank, announced his intention to resign on the same day the acquisition was signed.
While Adom reported a net profit of NIS 50 million in 2025, the deal's relatively low valuation is linked to significant risks, primarily the impending expiration of Adom's operating concession in May 2027. Adom serves as a service provider to the facility, which is controlled by VID, a partnership between Veridis and Keystone. Although the concession can be extended, it may be at reduced rates, potentially impacting future profitability.
To secure the facility's long-term future, Baran and Veridis are jointly bidding on a NIS 1.5 billion tender to upgrade, expand, and operate the Ashkelon desalination facility. The tender aims to increase the plant's annual production capacity from 120 million cubic meters to 220 million cubic meters and extend its operating concession for an additional 25 years.
The announcement of the acquisition coincided with the departure of Baran's long-time CEO, Yitzhak Frank, who announced his intention to resign after more than 20 years with the company. Baran, controlled by Avihai Stolero and founder Meir Dor, has a market cap of NIS 470 million.
Summarized by baba from the reports of 3 newsrooms. Updated
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