Fortissimo Capital News
30 articles
Private equity fund seeks local partners to compete for the world leader in precision irrigation.
Fortissimo, a private equity fund, is preparing to acquire control of Netafim, a leading precision irrigation solutions manufacturer. The fund is reaching out to local institutional investors for co-investment, similar to its previous acquisition of Cellcom. Fortissimo is competing against two foreign funds and is leveraging its relationships with Kibbutz Hatzerim, which holds a 20% stake in Netafim, to strengthen its bid. The acquisition is valued between $1.2 and $1.5 billion, with Fortissimo needing to secure additional funding. Orbia, the current controlling shareholder, is under financial pressure and looking to sell Netafim. The acquisition reflects Fortissimos confidence in surpassing competitors and securing the deal.
Acquired-by
The Israeli investment fund bets $120 million on a company grappling with stagnant growth, failed mergers, and fierce rivals.
Stratasys, a leader in 3D printing, is facing stagnant growth and fierce competition. Despite generating significant revenue, its market value has declined significantly over the past decade. Fortissimo Capital has invested $120 million for a 15% stake, aiming to leverage Stratasyss market position to reignite growth. The company plans to cut costs by laying off 15% of its workforce and is exploring growth opportunities in metal 3D printing and dental applications. Stratasyss future growth may depend on acquiring Desktop Metal, a move complicated by Nano Dimensions involvement. Despite challenges, Stratasys remains a technological leader in 3D printing.
InvestmentLayoffsAcquisition
Private equity firm acquires 14% to raise its stake to 15.5%, with the deal valuing shares 10.6% above Nasdaq’s closing price.
Israeli private equity fund Fortissimo is investing $120 million in 3D printing company Stratasys, acquiring 11.65 million shares at $10.30 per share, which is 10.6% above the closing price on Nasdaq. This investment increases Fortissimos stake in Stratasys from 1.5% to 15.5%, with an option to further increase it to 24.99% or even 35% through a tender offer. Fortissimos founder, Yuval Cohen, will join Stratasyss board. The investment reflects confidence in Stratasyss leadership and growth potential. Despite previous acquisition attempts by companies like Nano Dimension, Stratasyss shares have recently recovered. The company plans to lay off 15% of its workforce as part of a $40 million cost-cutting plan.
InvestmentPartnersLayoffs
Fortissimo plans TASE IPO for Sugat
Israeli private equity firm Fortissimo Capital is planning a flotation for food manufacturing company Sugat, which it acquired control of and has since enhanced. Fortissimo is considering Sugats IPO at a company valuation of NIS 1 billion, but due to current market conditions, the flotation is not likely to happen until late 2024 or early 2025. Since acquiring Sugat in 2019, Fortissimo has sold land around its factory and brought in a 20% equity partner in 2021 for NIS 160 million, reflecting a company valuation of NIS 800 million. Fortissimo has also expanded the company by acquiring companies producing cooking oils, poppy seeds, coffee and tahini.
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"The business sector continues to succeed because of companies' value proposition" | CTech
Yuval Cohen, managing partner at Fortissimo Capital, spoke about the resilience and success of Israeli businesses during a panel discussion in Paris. He highlighted the recent sale of 65% of software company Priority to Blackstone for $800 million as an example of this success. Cohen also discussed the importance of strong value propositions and the potential for future challenges. The panel also included discussions on the cooperation between Israel and Europe, with Israeli institutions managing NIS 2.5 trillion in public funds looking to diversify their investments outside of Israel.
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Fortissimo Capital to acquire control of Cellcom at $700 million valuation | CTech
Israeli private equity fund Fortissimo Capital is set to acquire a 35.6% controlling stake in Israeli telecommunications company Cellcom from Discount Investment Corporation (DIC). The deal is worth approximately $248 million, reflecting a company value of $700 million for Cellcom. This is an 18% premium over Cellcom’s market cap of $590 million on the Tel Aviv Stock Exchange. Fortissimo, managed by Yuval Cohen, will receive exclusivity for the acquisition of control of Cellcom, headed by CEO Daniel Sapir, and will perform a targeted due diligence. The deal is expected to be finalized in two weeks.
Acquisition
Fortissimo buys control of pharmaceutical co CTS
Israeli private equity firm Fortissimo Capital has acquired an 80% stake in CTS Group, a pharmaceutical and consumer healthcare company, for NIS 150 million. The acquisition is expected to result in growth and expansion for CTS Group, with plans for organic growth and additional acquisitions in its core businesses and related industries. CTS Group operates in the pharmaceuticals, agricultural products, and veterinarian products sectors and has annual revenue in the hundreds of millions of shekels. CEO Sigal First will retain a significant stake in the company and continue to serve as chair of the board.
Acquisition
Fortissimo buys retail data co StoreNext for NIS 180m
StoreNext, an Israeli retail data company, has cancelled its planned IPO on the Tel Aviv Stock Exchange (TASE) due to an acquisition by Israeli private equity fund Fortissimo Capital. The acquisition price of NIS 180 million is 10% below the target valuation in StoreNexts IPO prospectus. Fortissimo Capital aims to enhance and expand StoreNexts activities, as the company provides critical data for suppliers and retailers. StoreNext was previously controlled by Retalix and currently has 114 employees. The acquisition was led by managing partner Yuval Cohen. The event occurred on June 15, 2022.
Acquisition
פימי לא לבד: פורטיסימו מגייסת מיליארד דולר לקרן חדשה כלכליסט
Israeli private equity firm Fortissimo is reportedly raising $1 billion for its sixth fund, marking the largest fund in its history. The firm, led by Yuval Cohen, plans to invest in larger companies and make follow-on investments in companies it already controls. The fund is expected to close between the end of Q1 2022 and the beginning of Q2 2022. The firm has previously raised $1.6 billion across five funds from institutional and financial bodies in Israel, the US, and Europe, and has made 60 acquisitions to date.
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Fortissimo buys 77% stake in Sela Software
Fortissimo Capital is acquiring a 77% stake in Sela Software, a leading cloud services provider in Israel. The financial details of the deal were not disclosed. As part of the acquisition, Ron Sprinzak has been appointed as the CEO of Sela Software. The company offers comprehensive cloud services and collaborates with Microsoft, Google, and Amazon. Fortissimo Capital plans to accelerate Selas growth by expanding its cloud services package and entering new markets globally. The founders of Sela Software expressed their belief in the companys abilities and possibilities for progress under the acquisition.
Acquisition
Fortissimo Capital scores $140 million from sales of Incredibuild shares
Fortissimo Capital has sold part of its shares of IncrediBuild Software Ltd. to Insight Partners for $140 million. The investment will be used to accelerate the expansion of U.S. operations and further propel innovation of the technology. Following the deal, Insight Partners will become the controlling shareholder of Incredibuild. The investment comes as Incredibuild experienced a 55% increase in revenue in the past year and aims to meet the growing demand for its software development acceleration technology. Over 800 customers, including Microsoft, Amazon, Citibank, and Disney, use Incredibuilds platform. The funding will enable Incredibuild to expand the market opportunity and scale its software development acceleration platform.
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פורטיסימו רוכשת את השליטה בסאנקויין פלזמה ההולנדית
Israeli private equity fund, Fortissimo, is leading a group of investors to acquire 85% of Dutch company Sanquin Plasma Products for €50 million. Fortissimo will contribute €37.5 million for a 64% stake in the company. Other investors include BioSolutions LLC, OBF Investments, and Mesola Inversiones SL. Sanquin, a non-profit organization responsible for blood supply in the Netherlands, will retain a 15% stake in the company. The deal is subject to regulatory approval in the Netherlands.
AcquisitionInvestment
Fortissimo buys MGAR group for NIS 240m
Private equity firm Fortissimo has acquired the MGAR group, a major provider of services to municipalities in Israel, for NIS 240 million. The acquisition includes subsidiaries Cellopark, a parking payment app, and Prioricity, which provides ERP systems to the municipal sector. Cellopark has a 15% market share in Israel and plans for expansion to other countries. The MGAR group was previously controlled by ATE, owned by the Dan David Foundation and founder Eliyahu Houri. Fortissimo, one of the leading private equity firms in Israel, has raised $1.6 billion in funds and has successful exits in companies like Sodastream and Kornit Digital.
Acquisition
פורטיסימו במו"מ לרכישת החברה האם של סלופארק בכ-200 מיליון ש בלעדי
Private equity fund Fortissimo Capital is in advanced negotiations to acquire control of municipal services company מ.ג.ע.ר from ATE, owned by the heirs of Dan David. The deal is estimated to value מ.ג.ע.ר at around 200 million shekels. מ.ג.ע.ר provides municipal services such as collection and municipal supervision to local authorities across the country, but Fortissimos interest in the company comes mainly from the technological aspects of its operations.
Acquisition
Israel's Fortissimo closes $650m investment fund
Israeli private equity firm Fortissimo Capital has announced the final closing of its fifth fund, Fortissimo Capital Fund V, L.P., with commitments of $650 million. The fund will focus on special situations and growth opportunities. Fortissimo has raised a total of $1.6 billion. The firm sees the commitment of its investors as a strong vote of confidence in its investment strategy and ability to enhance the value of its portfolio companies. Some of Fortissimos notable exits include IPOs of Kornit Digital Ltd and SodaStream International Ltd, as well as various sales of holdings to other companies.
Investment
Fortissimo raising over $500m for 5th fund
Israeli private equity fund Fortissimo Capital is launching a fifth fund of over $500 million. The fund specializes in investments in tech and industrial companies associated with Israel. Fortissimo has raised four funds in the past, with high returns for investors. The fourth fund, raised in 2015, achieved several impressive exits. Fortissimo recently reached an agreement to acquire Sugat, Israels leading company in the marketing of sugar, rice, and legumes, for $60 million. The acquisition will be carried out through Salt of the Earth, which Fortissimo acquired earlier this year.
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Fortissimo Wins Acquisition Tender for Dry Foods Company Sugat
Israel-based private equity firm Fortissimo Capital Management has won the tender for the acquisition of Sugat Industries Ltd. for approximately $65 million. Sugats current owner, ED&F Man Holdings Ltd., has faced financial difficulties. Fortissimo plans to merge Sugat with Israeli salt company Melach Haaretz Ltd., which it acquired earlier this year.
Acquisition
Office Tour: Fortissimo Offices - Tel Aviv
Alter architects designed the new Fortissimo HQ offices located in Tel Aviv, Israel. The private equity firm, Fortissimo, is known for investing in high tech and industrial companies. The office design reflects the elegant and classical yet modern and daring spirit of the company. The space features unique geometries in the ceilings, crushed marble on the geometric islands for enhanced acoustics, glass partitions imported from Italy, and carefully selected furniture from leading designers. The design leaves a lasting impression on anyone who enters.
Partners
Fortissimo buys Arison's Salt of the Earth
Salt of the Earth, Israels largest salt producer, was sold to the Fortissimo fund for NIS 160 million, lower than the expected price of NIS 250-300 million. The company has stable and profitable activity, but its profit margins are low and its ability to grow is limited. There is uncertainty about the companys land, especially in Eilat. Salt of the Earth is a marginal holding for the Arison group, which is in the process of liquidating its investments in Israel. The deal is expected to close this week. Salt of the Earth is classified as a monopoly and supplies 80% of salt consumption in Israel. The company was previously owned by the Dankner family and later acquired by Shari Arison. Fortissimo is a private equity fund led by Yuval Cohen.
Acquisition
Fortissimo sells remaining stake in Kornit Digital
Private equity firm Fortissimo Capital has sold its remaining shares in Kornit Digital, resulting in a total profit of about $300 million. The firms original investment in 2011 was $19 million. Kornit Digital, an Israel-based company, produces digital printing systems for printing textiles and has a market cap of $767 million.
Investment
Fortissimo sells Israeli SaaS co Starhome to Vista for $100m
Fortissimo Capital has sold Starhome, a wholesale and retail roaming, clearing, settlement, and fraud prevention technology company, to US private equity fund Vista for an estimated $100 million. Fortissimo had acquired Starhome in 2012 for $54 million. Starhomes profitability has risen, and the profits from the sale will be divided between Fortissimos second and third funds. Vista plans to merge Starhome with its US portfolio company Telarix. Starhome has 300 employees, and it is expected that they will retain their jobs after the merger.
Acquisition
The man who saved Sodastream from bankruptcy
Sodastream International Ltd. has been acquired by PepsiCo for $3.2 billion. The sale marks a significant turnaround for the company, which was in deep debt 12 years ago. Fortissimo Capital, an Israeli private equity fund, invested $12 million in the struggling company and later sold its entire holdings for $223 million. The gross profit of Sodastream, which was renamed from Soda-Club, was a key factor in attracting investment. The acquisition by PepsiCo is seen as a result of Sodastreams success in leveraging environmental and health trends, such as promoting reusable bottles and focusing on sparkling water instead of sweetened drinks.
InvestmentAcquisition
Fortissimo Capital to Buy 30% of Water Treatment Company IDE
Fortissimo Capital has signed a memorandum of understanding to acquire 30% of Israeli water treatment company IDE Technologies Ltd. from Delek Group. IDE specializes in desalination and industrial water treatment and is a global leader in the field. The acquisition is valued at $206 million, giving IDE a company valuation of $412 million. Fortissimo and Delek will raise $80 million to $100 million in debt securities for the deal. Delek will receive $40 million in cash and provide seller financing for the rest, while also being entitled to a certain amount of future profit from IDE.
Acquisition
Fortissimo buys Gadot Biochemicals from Delek
Delek Group is selling Gadot Biochemical Industries to the Fortissimo fund for NIS 40 million. The sale does not include the land on which Gadot Biochemicals plant is located. Gadot Biochemicals has caused heavy losses for Delek Group in recent years. Completion of the deal is expected in two weeks, pending regulatory approval.
Acquisition
Fortissimo Sells Dip-Tech
Fortissimo Capital Fund has announced the sale of its portfolio company, Dip-Tech Ltd., to Ferro Corporation. Dip-Tech is a leading provider of digital ceramic glass printing solutions. The purchase price paid by Ferro was $80 million, with $60 million payable immediately and an additional payment of up to $20 million based on Dip-Techs performance in 2017 and 2018. Fortissimo Capital Fund has invested in multiple successful digital printing companies in the past. The sale to Ferro will enable Dip-Tech to extend its global reach and solidify its ceramic ink technology leadership.
Acquisition
Fortissimo buys medical equipment co Tuttnauer for $100m
Fortissimo Capital has signed an agreement to acquire 100% of sterilization equipment company Tuttnauer for $100 million. Tuttnauer is a global leader in sterilization systems for laboratories, hospitals, and medical clinics. The company, whose turnover is in the tens of millions of dollars, markets its products in many countries. Founded in 1950, Tuttnauer was managed by the Tuttnauer family and held its IPO in 1993. The company reported NIS 213 million in revenue and a NIS 7.6 million profit in its most recent financial statements. Tuttnauer was hit hard by the 2009 economic crisis but has since maintained steady growth. Fortissimo Capital, a private equity fund, is expected to bring new geographic areas, products, and innovation to Tuttnauer.
Acquisition
Fortissimo offers $108m Kornit stake on Nasdaq
The share price of Kornit Digital has risen 75% this year. Fortissimo Capital, the largest shareholder in Kornit, sold shares in the company for $90 million and is planning to sell more for up to $108 million. Kornits market cap is now $742 million. Fortissimo acquired a controlling interest in Kornit in 2011 with an investment of $16 million, and the companys value has grown 32 times since then. Kornit also issued new shares and entered into a cooperation agreement with Amazon. The agreement allows Amazon to buy 8% of Kornits shares as a function of $150 million in purchases over five years.
InvestmentPublic Trading
Fortissimo Sells Kornit Shares for $90 Million in Nasdaq Secondary - Fortissimo
Kornit Digital has completed a lightening offering of 7.5 million shares, with 2 million new shares issued for $33 million and 5.5 million shares sold by Fortissimo Capital for $90 million. The offering reduced Fortissimos holdings in Kornit to 29%. Kornit plans to use the funds for possible acquisitions. The companys equity value has increased 23-fold since Fortissimos initial investment. Kornit has also announced an increased cooperation with Amazon.com in the Merch by Amazon program.
InvestmentAcquisitionPartners
Fortissimo buys half of Origene Seeds for NIS 40m
Private equity fund Fortissimo Capital has acquired half of Origene Seeds shares and invested NIS 40 million into the company. The investment will be used to accelerate Origene Seeds growth and facilitate organic growth, as well as mergers and acquisitions. Origene Seeds plans to penetrate European and other new markets following the entry of Fortissimo. The company specializes in research, production, and sale of vegetable seeds, with a focus on the gourd family. Fortissimo Capital is known for investing in mature companies to accelerate their growth, with a focus on technological and industrial companies. The fund has raised a total of $1 billion for its four funds.
Investment
Israeli private equity firm Fortissimo closes $470m fund
Israeli private equity firm Fortissimo Capital has closed its fourth fund, Fortissimo Capital Fund IV L.P., with commitments of $470 million. The fund is focused on investing in maturing technology and industrial companies. Fortissimo now manages four funds worth nearly $1 billion. The investors in Fortissimo IV include state and corporate pension funds, endowments, fund of funds, trusts, and insurance companies. Fortissimos investment strategy is to achieve capital appreciation through taking a leading role and active approach in Israeli-related global businesses that require immediate and significant change or stimulation of growth. The fund has had notable exits including the recent IPO of Kornit Digital Ltd and the sale of Nur Macroprinters to Hewlett Packard.
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