Maytronics offers 50% of its shares to FIMI fund in investment at 1.821 shekels per share
Key Facts
FIMI fund submitted a non-binding offer to invest in Maytronics through a share allocation priced at 1.821 shekels per share, in a deal that would give the fund a 50% stake, according to Globes. The proposal combines new financing for the company with a material change in its ownership structure. The agreement has not been finalized, as completion requires due diligence, signing a binding agreement and obtaining additional approvals. These include shareholder meeting approval, according to Globes. The offer comes as the company works to reorganize its strategy and operations after pressure on its financial results.
The offer gives the company a potential path to raise capital in stages, with each stage tied to a higher valuation than the previous one. The first option includes an additional investment of 50 million shekels through the end of 2027, based on a company valuation of 250 million shekels. The second option allows for an investment of 100 million shekels through the end of 2028, based on a valuation of 300 million shekels. These options remain discretionary, according to details of the offer published by Globes, and do not represent confirmed financing under the core deal. The offer sets the share allocation price at 1.821 shekels per share.
The controlling shareholder’s position would change if the deal is completed. Kibbutz Yizre’el currently owns about 56% of Maytronics’ shares, and its stake could fall to about 28% after dilution from the share issuance, according to Globes. This means FIMI’s entry would not only provide liquidity but also redistribute ownership between the new investor and the current shareholder. Calcalist reported that the company established an independent committee to manage negotiations with the fund. The move is part of arrangements to negotiate an offer that has not yet reached a final agreement.
Maytronics is giving the fund an exclusivity period of 60 days to conduct due diligence and negotiate a binding agreement, according to Globes. During this period, the offer is subject to due diligence before any final commitment. Completion also depends on signing the agreement and obtaining additional approvals, including shareholder meeting approval. Calcalist said an independent committee was established to manage negotiations with FIMI. The deal therefore remains at the negotiation stage, with implementation conditions and approvals still outstanding.
The proposal comes as the company faces pressure on profitability despite improving cash flows. Cash flow from operating activities reached about 293.3 million shekels in 2025, compared with 129 million in 2024, alongside a reduction of about 247 million shekels in inventory balances. The company also ended 2025 with net debt of about 592 million shekels, down from about 760 million at the end of 2024, a decrease of 168 million shekels. These figures show an improvement in cash and debt during the year, while other pressures on operating and financial performance persisted.
By contrast, gross profit fell to 374.9 million shekels in 2025, down 35.9%, and its margin dropped to 26.7% from 36% the previous year. The company attributed the pressure to the sales mix, inventory reduction, the strength of the shekel, U.S. tariffs and inventory provisions, according to its annual results. Revenue had reached 514.8 million shekels in the second quarter of 2025, a year-on-year decline of 15.2%. The company attributed the quarterly decline mainly to operational difficulties at its U.S. subsidiary’s logistics center. These results place the financing proposal in the context of challenges involving margins and operations, alongside improved cash flows and lower debt.
The company remains far below its 2021 market peak, when its market capitalization reached 9.1 billion shekels, according to Calcalist. That figure dates the share’s movement in the cited session, without establishing that the rise occurred immediately after the offer was announced or identifying its catalyst. The chairman said the company had begun a “strategic improvement and operational reorganization” process following management changes near the end of the year. He added that the new production line launched near the end of 2025 is expected to strengthen the company’s competitiveness.