Kibbutz Shamir, one of the most financially successful kibbutzim in Israel, is completing one of the largest exits in the history of the kibbutz industry, pouring hundreds of millions of dollars into its coffers. Globes learned that the kibbutz, which owned 50% of the shares of Shamir Optica, which develops and manufactures lenses, recently sold its holdings to the European optics giant Asilor-luxotica (EssilorLuxottica) which is traded on Nasdaq with a value of about 70 billion euros.
Prior to the transaction, the purchasing company owned 50% of the shares of Shamir Optica, which it purchased 11 years ago for $130 million (37% from the kibbutz hands and 13% from the public) and according to a company value of approximately $260 million, while in the current transaction the value of Shamir Optics more than doubled, and was estimated at between half a billion and a billion dollars.
Part of the huge amount that will enter the Shamir coffers will surely be distributed among the members of the kibbutz, who will become richer by millions of additional shekels. Even before the transaction, Kibbutz Shamir was considered one of the richest kibbutzim in Israel, and apart from the optical business, it also owns, among other things, control of the company Lag Industries (60%), which is engaged in the production of non-woven fabrics and is traded in Tel Aviv at a value of NIS 426 million. The kibbutz has about 420 members, it has been privatized since 2002, but provides its members with an economic safety net. Most of them work outside the farm.
The acquisition of the first half of the shares of Shamir Optica was carried out by the French Essilor even before it was merged with the Italian Luxottica, the merger of which was completed in October 2018 and created one of the largest optics groups in the world, engaged in the design, manufacture and distribution of eyeglasses, lenses and sunglasses of the leading brands from the fashion houses the most desirable in the world, alongside the Ray Ban brand she owns.
Shamir Optics was founded in 1972, and today it is active in 23 countries through 18 international optics laboratories, and employs more than 2,500 people worldwide. Shamir owns about 30 companies (in full or in joint ownership), and 97% of its revenues originate from activities abroad.
In 2005, the company was listed on Nasdaq (the first representative of the kibbutz industry) at a value of 225, and six years later, in 2011, it returned to being a private company, after Asilor purchased all of the public holdings and part of Kibbutz Shamir’s shares in the company.
Yagan Moshe, who has served as CEO of Shamir Optica since 2018, will continue to lead the company after its acquisition, and will report directly to Francesco Milleri, CEO of Asilor-Luxotica. Moshe has been living in Singapore for the past few years. Shamir’s branding will also be kept separate, alongside the production and development department which will remain in Kibbutz Shamir in Israel.
Meanwhile, Luxottica’s chain of optical stores, Sunglasses Hut, is expected to enter Israel, after signing a franchise agreement with Harel Wiesel’s Fox Group. As part of the agreement Fox will establish and operate the chain of brand stores in Israel and the West Bank. Fox has committed to establishing approximately 50 stores within seven years. At the time, Luxotica tried to purchase the Iruka chain for 20 million euros, but the deal was blocked by the Competition Authority.
Demand for the prevention of vapor formation in Corona
Shamir Optics has developed in recent years through optical products and lenses with new technologies, such as lenses that prevent light reflections and reflections from screens when taking pictures, or technology to prevent the formation of steam on the lenses of the glasses, the demand for which soared with the obligation to wear masks.
The company has enjoyed an increase in revenues since the outbreak of the Corona crisis also within the framework of expanding its activities and entering new markets, including in Asian countries. Among other things, the company has signed collaborations with local chains, such as the largest chain in Japan, Paris-Mickey, and a collaboration with Formula 1 to improve the quality of vision of the teams. As part of the collaboration, Shamir’s logo is printed on the helmets of the drivers (in the Alpine Formula 1 team).
In a letter sent to its customers after the sale transaction, Shamir Optica’s management defined the purchase as “an incredible milestone, as we can now take advantage of a unique opportunity to strengthen our complementary distribution networks, well-known brands, and our leading optical products and solutions.”
Continue the sales sequence of collective enterprises
The exit of the members of Kibbutz Shamir continues a series of sales of kibbutz enterprises to huge companies from abroad, all of which were exposed last year in Globes. Thus it was revealed that Kibbutz Gazit sold the company Plazit-Poligal which it controls (80%) to the American company Plaskolite in exchange for more than -200 million dollars.
As part of the sale, Plascolite acquired full ownership in Plasit-Polygal, which defines itself as a pioneer and world leader in the design, development and production of polycarbonate, thermoplastic panels and profiles. Plazit-Polygal employs more than 1,000 people worldwide, and has production sites in Israel, Russia, the USA, Chile, Bulgaria and Spain. The products in which it specializes, and in which it has made a global name for itself, include the production of transparent panels from polycarbonate, acrylic, Polystyrene and more, which are marketed in more than 60 countries.
Plazit-Polygal products are intended for various needs, such as signage, acoustic walls, license plates, showers and greenhouses. In addition to the production sites, the company operates international subsidiaries and marketing and distribution centers all over the world.
Even earlier, it was revealed that Kibbutz Gazit and Ma’afil sold the MCP company they own, which manufactures trays for the food industry, to the food packaging giant Faerch from Denmark, in a deal that gave the sold company a value of 57 million euros as of the end of 2020. After deducting the debts of the sold company, they received The two kibbutzim are about NIS 170 million before tax, which will be divided equally between them (NIS 85 million each).
MCP, which was established over 40 years ago, employs close to 200 people in two factories, in Israel and the USA, and has sales of several tens of millions of dollars per year. The company is engaged in the development and production of advanced food packaging using innovative technologies, including those that can be taken out of the freezer straight into the microwave or oven. Its customers are food manufacturers, food marketing companies and retailers in the US, the Middle East and Europe.
At the same time, Kibbutz Ogen, a neighbor of Kibbutz Ma’afil in Emek Hefer, also sold the Ogenplast company, which develops and manufactures PVC products, to the German concern Kap, for approximately NIS 105 million. The anchor, who held 60% of the company’s shares, received an estimated NIS 63 million (gross) from the sale.
Ogenplast produces a variety of advanced PVC sheets for applications in the defense, construction, agriculture, home design and industry industries. Its products include floor coverings; waterproofing sheets for roofs, reservoirs and swimming pools; decorative sheets; as well as special, industrial and defense applications (dry storage, anti-aircraft protection, nuclear storage and awnings).