Israeli private equity firm FIMI Opportunity Funds, led by founder and CEO Ishay Davidi, has reported that it is in advanced talks to acquire control of Bio-Lab at a company valuation of NIS 290 million. FIMI is expected to buy a 51% stake from the company’s founders Dr. Meir Ehrenfreund, Dr. Leo Samuel and Dr. Jean Hildesheim for NIS 150 million.
The company, which produces complex chemical products at a very high level of purity for research laboratories and large customers in the pharmaceutical, biotech and microelectronics industries, was founded 50 years ago. Bio-Lab’s products are considered high-end and serve as raw materials and for classification, examination and control of complex production processes. FIMI usually does not report on talks to acquire a company unless the negotiations are likely to conclude with a deal. In this case FIMI has reported the talks because they are known to employees and others around the company.
Bio-Lab is headquartered in Jerusalem and currently has 200 employees. The company recently completed construction of a new plant in Kiryat Gat, which will begin operating soon after it receives approval from its biggest customers that it meets their manufacturing standards. Bio-Lab also has a factory in France and subsidiaries in the Netherlands and India.
FIMI is Israel’s biggest private equity firm, managing assets worth more than $7 billion. The firm acquires control of assets and enhances them.
There is growth potential
Bio-Lab matches the type of companies that FIMI usually seeks. It is a strong company financially with no debt, even after investing in construction of its new plant, with technology that brings value to its customers and exports a substantial part of its products. Bio-Lab is profitable but still has room for growth. FIMI has likely identified interesting engines of growth for the company and believes it can help it expand activities through exports to new markets, new customers and new products.
Bio-Lab has probably decided that in order to leap ahead in its activities and realize its potential it needs to bring in a partner like FIMI for investment. The company’s founders who are selling part of their shares FIMI are staying at Bio-Lab.
Founded in 1996, FIMI has acquired control of more than 100 companies and sold 69 of them for more than $7.5 billion.
Published by Globes, Israel business news – en.globes.co.il – on March 4, 2024.
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