Marathon Venture Capital Fund (TASE: MARA) will acquire 68% of Solcon Industries Ltd. for NIS 88 million, giving a company value of NIS 129.5 million.
Under the agreement between the parties, Marathon will have a option to acquire control of Solcon for up to two weeks from the publication of the company’s financial report for the third quarter, due by the end of the year. If Marathon does not exercise its option, NIS 420,000 paid for the option will be foreclosed.
Yokne’am-based Solcon develops, manufactures and markets industrial electronic systems, primarily soft starters for low and medium voltage AC motor switchgear, motor protection and control relays for AC asynchronous motors, and temperature control systems. Soft starters are the company’s core business.
Solcon has 110 employees and exports 75% of its output. The company has reportedly had at least 20% annual growth in recent years, which is expected to continue, because of global growth in the company’s markets, estimated as a $1 billion target market. Details about the company’s activity were not disclosed, but market sources believe that it makes an annual profit of NIS 10-15 million on NIS 100 million in sales.
Published by Globes [online], Israel business news - www.globes.co.il - on December 14, 2006
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