Maabarot Products

growth-negative

Teva Pharmaceutical Industries Ltd. is negotiating the sale of one of its manufacturing facilities in Kiryat Shmona, Israel. The leading contender to acquire the facility is German pharmaceutical device company B. Braun Melsungen AG. The plant is valued at up to $100 million. Kibbutz-owned food and nutritional supplement manufacturer Maabarot Products Ltd. is also bidding for the facility as it looks to expand into pharmaceuticals. Teva has announced its intention to sell or close over 20 of its manufacturing assets as part of its debt-reducing reorganization plan. The Kiryat Shmona facility employs around 200 people and is one of Tevas more profitable facilities. Teva has also announced plans to lay off 25% of its employees by 2019.

growth-positive

Algaia, a French company manufacturing algae-based products, has raised €4 million in follow-on funding from its main shareholder, Maabarot Products Ltd. The funding will be used to accelerate the companys development and install a new specialty seaweed extract production unit. Algaia previously invested €5 million in its facilities to develop new marine ingredients and increase capacity. The company plans to expand its portfolio beyond traditional seaweed extracts and strengthen its positions in the Americas. Algaias main shareholder is committed to the companys growth plans.

growth-positive

Maabarot Products is selling its 49% stake in infant-formula maker Materna to its partner, Osem-Nestle, for between 550 million and 600 million shekels ($147 million-$160 million). The sale is expected to be completed by mid-June and will earn Maabarot a capital gain of up to 450 million shekels. Materna controls a significant portion of the market for infant formula and baby cereal sales.

growth-positive

Maabarot Products Ltd. has decided to exercise its option to sell its entire 49% stake in the Materna partnership to Osem Investments Ltd. Maabarot expects to receive proceeds of NIS 550-600 million from the sale, resulting in a NIS 400-450 million after-tax capital gain. This will increase the companys shareholders equity from NIS 387 million to NIS 787-837 million. The partnership in Materna accounts for most of Maabarots revenue. Osem-Nestle, which already owns 51% of Materna, will now acquire full ownership. Maabarot believes that Osem-Nestle will be able to lead Materna to new heights and continue its growth trend.

growth-positive

Maabarot Products Ltd. has acquired a 40% stake in Algaia, a French company that develops raw materials produced from seaweed. The acquisition was valued at €5 million. Algaia plans to use the funds to acquire assets and Cargill, a US company that also produces raw materials from seaweed. The revenue turnover of Algaia and Cargill in 2015 and 2016 was NIS 92 million and NIS 76.5 million, respectively. The acquisition is part of Maabarots growth strategy to expand its business in Israel and overseas. Maabarot aims to have Cargill reenter the seaweed-based pharma products market, as well as the personal care and food categories.

growth-positive

Algaia has revealed a new strategic investor, Maabarot Products Ltd, following its deal to acquire Cargills Alginate business. Maabarot, a well-established company in the health and nutritional sector, will invest in Algaia as it acquires Cargills alginate business. Maabarot aims to expand the company internationally and sees potential in the marine ingredient space. Algaia CEO Fabrice Bohin stated that the deal with Cargills seaweed business will boost operations in the fast-growing sector. The acquisition is expected to be completed in November.

growth-positive

Nutrinia, a premature infant and child nutrition company, has raised $12 million in funding from Pontifax, OrbiMed, and the Jacobs family. The company has developed ingestible insulin that improves the absorption of nutrients in the intestine, allowing premature infants and children who have undergone intestinal-shortening surgery to be disconnected from intravenous feeding sooner. In trials, Nutrinias product has shown to reduce the duration of dependence on intravenous feeding and hospitalization in the neonatal intensive care unit. The funds raised will be used for two Phase III clinical trials, with the goal of bringing the products to market in 2018. Nutrinia plans to register the products as orphan drugs for children. The company was founded by Professor Naim Shehadeh and is supported by the Jacobs family and Maabarot, a manufacturer of baby formula.

growth-positive

Nestle and its subsidiary Osem Investments have signed a deal to acquire 51% of Materna Laboratories, Israels largest producer of milk substitutes for babies, for NIS 252 million. The deal includes the transfer of control, brand, operations, and intellectual property rights. The Emek Hefer factory will continue to operate for at least 15 years, and kibbutz members employed there will not have their terms changed for at least 10 years. The acquisition aims to help Materna become part of the global industry and allow it to remain at the forefront of the infant food market.

growth-positive

The Tel Aviv Stock Exchange (TASE) indices were mixed, with the Tel Aviv 25 and Tel Aviv 100 falling, but the Tel-Tech rising. Maabarot Products, a baby formula maker, experienced a significant increase in turnover and share price due to the Remedia scandal. Agis Industries also saw a rise in turnover and announced FDA approval for its Mupirocin ointment. The two largest chemical companies on the TASE, Israel Chemicals and MA Industries, are due to publish their third-quarter financial reports. Bezeq attracted interest due to rumors of a tender to sell shares. Formula Vision Technologies experienced a significant rise in share price.