The controlling shareholders in Israeli non-woven fabrics producer Avgol Nonwoven Industries Ltd. (TASE:AVGL) are negotiating to sell it to a Thai company under Indian ownership.
The two main shareholders in Avgol, UK-based private equity firm Ethemba Capital and Leumi Partners, which together hold 65% of the company, have accepted a takeover offer apparently at a valuation of NIS 1.2-1.3 billion, which compares with a current market cap of NIS 1.06 billion.
Avgol manufactures non-woven fabrics used in making disposable diapers, feminine hygiene products, disposable medical products, and wipes. The company, run by CEO David Meldram, saw its revenue grow 8.6% in 2017 to $368 million. Gross profit declined, however, because of a rise in selling expenses, and the company posted a net profit of $21 million, down 15% on the previous year.
Published by Globes [online], Israel business news - www.globes-online.com - on May 8, 2018
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