From a $3 billion peak to a $65 million deal: Maytronics’ dramatic fall
FIMI is seeking half of the company through a proposed investment, while Kibbutz Yizre’el’s stake has lost much of its former value.
The FIMI investment fund is moving forward with a plan to acquire a controlling stake in Maytronics, the Kibbutz Yizre’el-based manufacturer of pool-cleaning robots. The company announced Friday that the fund, managed by Ishay Davidi, has submitted an offer to invest NIS 200 million ($65M) in exchange for 50% of its shares. The proposal implies a pre-money valuation of NIS 200 million, below earlier estimates of NIS 300 million.
The parties have signed a memorandum of understanding stipulating that, if the transaction is completed, existing shareholders’ stakes will be diluted by half, leaving Kibbutz Yizre’el with a 28% holding in the company.
Calcalist first reported FIMI’s interest in Maytronics on August 17. Since then, the fund has conducted preliminary due diligence, culminating in the submission of its offer. Under the proposal, FIMI would receive shares at NIS 1,821 apiece, a 7% discount to the stock’s current market price.
FIMI is also seeking options to inject additional capital into the company. The fund would have the option to invest a further NIS 50 million by the end of 2027, based on a valuation of NIS 250 million, and another NIS 100 million by the end of 2028, based on a valuation of NIS 300 million.
Maytronics has granted FIMI a 60-day exclusivity period to conduct further due diligence and negotiate a binding agreement. The exclusivity period is set to be extended automatically until December 31. The company has also established an independent committee to conduct negotiations with the fund. Any transaction will require approval by the shareholders’ meeting.
The proposed deal comes after a steep decline in Maytronics’ valuation. At its peak in 2021, the company was worth NIS 9.1 billion ($2.9B), putting the value of each of the 300 members of Kibbutz Yizre’el’s holdings at approximately NIS 17 million. Today, the value of each member’s stake is estimated at just NIS 300,000.
The decline in the value of their holdings comes despite the kibbutz having received hundreds of millions of shekels in dividends over the years, when Maytronics’ business was thriving.
