Israeli paint company Tambour sold for 800 million shekels
After deciding between competing offers from around the world, the Azrieli Group decided to sell its subsidiary to the Kusto Group from Singapore, for NIS 500 million ($144 million).
The sale, which will include taking on Tambour’s debts of NIS 300 million, is expected to be completed within a month, and as a sign of good faith, Kusto paid a $20 million non-refundable cash deposit.
The deal comes after weeks of speculation that the British-based Apax group would buy Tambour. The projected value of the sale to Apax was around NIS 100 million lower than the sale price to Kusto. Apax, which recently sold its majority shares in the dairy company Tnuva to a Chinese food company for $960 million, is looking to invest in medium-sized Israeli company through a new investment fund set up by Apax and other private investors. It reached theoretical understanding with Leumi Partners and others for the purchase of Tambour, but will now have to seek other investments in Israel.
The Azrieli Group is owned by the Canadian-Israeli real-estate tycoon David Azrieli, who has invested in a number of large-scale projects in Israel, including Jerusalem’s Malcha shopping mall and the eponymous Azrieli Center in Tel Aviv. He is also a philanthropist, donating to Holocaust education projects, accessible education for Jewish and non-Jewish children, and the political student lobby group Im Tirtzu.
In recent years, the Azrieli Group has been selling off various subsidiaries and majority shares in external companies. Speaking for the Azrieli Group, Menachem Einan said that “The deal for the sale of Tambour is the realization of the group's strategy of focusing on its core activity in income-producing real estate and selling businesses not connected to this field.” With this in mind, there is high speculation that Azrieli will soon sell the petroleum company Sonol, as well as its majority shares in Granite Hacarmel Investments Ltd.
Tambour, which was founded in 1936, has grown to become a major paint producer and supplier. Kusto will leave the company as-is, while aiming to make it a major player in the construction supplies industry in Israel and worldwide.