Israeli defense electronics company Elbit Systems Ltd. notified the TASE today that it has signed a definitive agreement to sell its 85% stake in Israeli build to print manufacturer Ashot Ashkelon to Israeli private equity firm FIMI Opportunity Funds for $88 million, at an overall company valuation $103.5 million, Trend reports with reference to Globes.
Ashot Ashkelon makes parts for armored vehicles, heavy vehicles and aerospace including gears, gearboxes, transmissions, landing gear components, and engine shafts and rotating parts.
Elbit Systems president and CEO Bezhalel Machlis said, "Since the acquisition of IMI by Elbit Systems, Ashot has undergone several processes to improve its business focus and operational efficiency. This sale is consistent with our strategy to focus on our core areas of business. We look forward to continuing our cooperative work with both Ashot and FIMI".
FIMI Opportunity Funds, led by founder and CEO Ishay Davidi, acquires and enhances industrial and service companies and controls companies in similar fields. Since its establishment in 1996 FIMI has completed 96 investments, executed 65 exits worth more than $5.5 billion, and raised seven funds.
Elbit Systems gained control of Ashot Ashkelon three years ago when it acquired IMI Systems from the state for NIS 1.8 billion. In April 2020, Elbit Systems attempted to buy the remaining 15% in the company at a company valuation of NIS 283 million and delist it from the TASE. But the minority shareholders did not accept the offer.
Elbit Systems, one of the largest companies traded on the TASE with a market cap of $6.55 billion, was eager to gain full control of Ashot Ashkelon so that it could merge the company into its overall operations. Without such synergistic savings Elbit Systems did not want to retain the company as anyway Ashot Ashkelon is struggling to grow.