Prominent private equity funds in Israel are competing over the acquisition of Ashdod-based industrial filter manufacturer A.L. Filter, sources inform "Globes." The 50 year-old family-owned company, which makes air, fuel, and oil filters for the auto industry, was founded by brothers Gideon and Ehud Aloni. Ehud Aloni owns 50% of the company's shares, together with two other family members, and he and Gideon Aloni are listed as directors in the company.
As far as is known, the owners of A.L. Filter have decided to consider selling the company, and have hired a financial consultant for the purpose. The entities interested in the company apparently include three of Israel's leading private equity funds: Ishay Davidi's FIMI Opportunity Funds, Ariel Halperin's Tene Investment Funds Ltd., and Yuval Cohen's Fortissimo Capital. All three have experience with enhancing the value of industrial companies, and in certain cases, the business of their portfolio companies are synergetic to the business of A.L. Filter.
For example, Tene Investment holds Fishman Thermo Technologies, which manufactures thermostats and components for the auto industry, and works with companies like Landrover and Saab. FIMI holds public companies Tadir-Gan (Precision Products) Ltd. (TASE: TDGN) (a producer and marketer of aluminum chasses for the auto industry) and Raval Ltd. (TASE: RVL) (a developer and manufacturer of plastic ventilation systems and chasses for the auto industry). The interest from a number of parties is likely to result in a good value for A.L. Filter. At the same time, the negotiations are still at an early stage.
According to the A.L. Filter website, the company has over 1,100 employees at its facilities in Israel, the US, China, Bulgaria, and Japan. The website also states that the company's catalogue contains over 150,000 auto applications. "Actually, there is a good chance that your car has one of our filters," the website states. The list of auto manufacturers using the company's filters includes prominent names like BMW, Mitsubishi, Renault, Ford, Honda, and others. As a private company, A.L. Filters does not publish financial data, but market sources estimate its annual sales volume at nearly $100 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2015
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