Consortium comprising funds advised by Apax Partners & Mivtach Shamir acquires Tnuva for $1.025 billion
7th January 2008Apax The acquisition of a majority stake in Tnuva by funds advised by Apax Partners and Mivtach Shamir group was completed on 07 January 2008 at a value of $1.025 bi The acquisition of a majority stake in Tnuva by funds advised by Apax Partners and Mivtach Shamir group was completed on 07 January 2008 at a value of $1.025 billion.
Tel Aviv, Israel, 07 January 2008 - The acquisition of a majority stake in Tnuva by funds advised by Apax Partners and Mivtach Shamir group was completed on 07 January 2008 at a value of $1.025 billion. The signing took place at the Tnuva offices in the presence of the Managing Director of Apax Partners Israel Ltd., Dr. Zehavit Cohen, and the CEO of Mivtach Shamir, Mr. Meir Shamir and the CEO of Tnuva, Mr. Arik Reichman.
The signing brings to an end a process started in March this year, when the Tnuva Shareholders Congress approved, by a majority vote of 97%, the agreement to sell the company to a consortium comprising funds advised by Apax and the Mivtach Shamir group. Following the completion of the deal the ownership of Tnuva will be split between the Apax-Mivtach Shamir (76.7%) consortium and a Holding Corporation (23.3%) whose members include Kibbutzim, Moshavim and the Kibbutz Economic Organizations.
At the signing event Arik Reichman said "This is a historic day for Tnuva, the founding agricultural communities, the agriculturists and dairy farmers and for me personally. The signing symbolizes the end of a long process that we have been working on over the past four years and the start of a new chapter in my life. I believe that together with the new investors Tnuva will continue the transformation experienced in the last decade, and will continue to grow both in Israel and in international markets.
Zehavit Cohen said: “Tnuva is one of the strongest and most valued companies in the economy; its products reach almost every Israeli resident on a daily basis. The vision and aspirations of Tnuva's management, led by Arik Reichman, has set a sound foundation for future development. Tnuva will continue to develop its strategic assets: the human resources of the company; the long term cooperation with the agricultural communities and the consumers to whom Tnuva has had a deep commitment for decades. All of these will allow Tnuva to continue to prosper in the future. We are convinced that the knowledge and global contacts of the new investors will allow Tnuva to maintain its leading position in the Israeli market and to develop in the global market."
Meir Shamir said: "Tnuva enjoys the best of all worlds in this deal by being held by an international partner like Apax and an Israeli partner like Mivtach Shamir. As one who was a Kibbutz member I understand the agriculturists' feelings, but they made the right decision – to allow Tnuva to spread its wings and to continue to develop on its new path. I promise all the members of Tnuva and its employees, that we will continue the development of the company at full speed."
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About Apax Partners
Apax Partners is one of the world’s leading private equity investment groups. It operates across the United States, Europe and Asia and has more than 30 years of investing experience. Funds under the advice of Apax Partners total $35 billion around the world. These Funds provide long-term equity financing to build and strengthen world-class companies. Apax Partners Funds invest in companies across its global sectors of Tech & Telecom, Retail & Consumer, Media, Healthcare and Financial & Business Services.