Camouflage giant Fibrotex explores sale at $1 billion valuation
Company hires Jefferies to lead stake sale amid rising military demand.
Riding the wave of rising sales in the defense industry, Fibrotex Technologies, based in Petach Tikva and owned by Martin and Adi Blum, is embarking on a strategic move to sell a stake in the company. Calcalist has learned that Fibrotex is in talks with strategic and financial entities to sell a stake at a valuation of approximately $1 billion. Calcalist has also learned that Fibrotex has hired the investment bank Jefferies to lead the process with interested parties.
The company specializes in developing, manufacturing, and implementing advanced camouflage technologies for armies, special forces, and police units. The systems it develops are designed to conceal personnel, installations, and vehicles from detection systems using multi-spectral camouflage. Fibrotex products hide objects not only from the human eye, but also from thermal cameras, night vision devices, radar, and other advanced technologies.
In addition, the company produces camouflage systems for tanks, armored personnel carriers, and command posts, as well as specialized materials with thermal camouflage capabilities, electromagnetic radiation shielding sheets, and personal camouflage suits and apparel for elite combat units.
According to market estimates, the company’s revenue in 2025 amounted to $130-150 million, with EBITDA in the tens of millions of dollars. However, figures for 2026 are expected to be significantly higher. The vast majority of sales are to the U.S. military, through its various divisions.
The company operates through three sister companies, each separately held by members of the Blum family, and the planned investment is expected to cover all three simultaneously.
The Blum family is seeking to capitalize on the strong momentum enjoyed by defense companies over the past two years, amid intensifying geopolitical tensions reflected in conflicts involving the U.S., Israel, and Iran, as well as the Russia-Ukraine war and ongoing fighting in Lebanon and Gaza. These developments, alongside the company’s consistent growth in recent years, have led to increased interest from both strategic and financial investors.
Fibrotex was founded by Eliezer (Leo) Blum, the family’s grandfather, an Austrian-born entrepreneur who immigrated to Israel from South America in the early 1960s. The company was originally established as a technical textiles manufacturer and gradually evolved into a defense-focused company specializing in camouflage technologies. Today, Fibrotex is considered the largest company globally in its field, which is expanding alongside the rapid development of drones and advanced detection sensors.
Martin Blum, one of the company’s owners, is the brother of Daniel Blum, a co-owner of FMS, a defense industry company traded on the Tel Aviv Stock Exchange at a valuation of approximately 2.4 billion shekels.
As noted, the company’s main customer is the U.S. military. In 2019, Fibrotex won a single-supplier contract worth $480 million and has since expanded through additional contracts signed with various branches of the U.S. defense establishment. The company currently operates in approximately 20 countries and has supplied more than 250,000 systems worldwide. Countries including Spain, France, Lithuania, the United Kingdom, the Netherlands, Finland, and several Southeast Asian nations are among its customers.
Fibrotex is considered the only company in its field that controls the entire production chain of camouflage products, from raw materials (yarns, pigments, dyes, and chemicals), through all stages of production, to the final product. Its solutions are adapted to a wide range of climates and terrains, including deserts, forests, urban environments, and Arctic regions.
Although originally founded as a textile company, Fibrotex began developing advanced camouflage solutions following the Yom Kippur War, supplying a complex two-dimensional mesh to the IDF. The First Lebanon War in 1982 accelerated its growth, and the company later expanded into international markets.
