Inspire buying 50% of wet-wipes maker DPL
Going by its prospectus, the holding company has more acquisitions in mind
Inspire Investments (TASE: INSP) today announced that at the end of last week, it signed an agreement to buy 50% of DPL Disposable Products Industries for NIS 18.75 million.
The amount values DPL, a privately held company, at NIS 37.5 million.
At present DPL is controlled by three siblings: Eynav Beber, and Yaron and Eran Adiv. The three will be left with 50% of the company.
Inspire, which is controlled (44%) by Avi Wertheim, will have a hand in management at DPL, which develops, manufactures and markets wet-wipes and hygiene products. No less than 85% of its wares are exported to Europe, including to Germany, England and France.
Inspire gets to appoint a chairman and half the company's board of directors, once the acquisition is completed, which the companies expect to do in a matter of weeks.
In parallel, based on a prospectus Inspire filed for an NIS 100 million bond offering, it is apparently planning additional acquisitions.
Inspire is a holding company that also owns 20% of Tadir-Gan, which makes oil pans for the vehicle industry; and 22% of Rimoni, a company that makes molds for the plastics industry.
Two months ago the company bought a 5.4% interest in Plastopil, a Kibbutz Hazorea company, which makes plastic sheeting mainly for the foods industry. Today Inspire announced increasing its stake in Plastopil to 8.7%, after buying 27,000 shares last week for NIS 6.70 each.
Inspire also owns a 4% interest in Scopus Networks, which went public on Nasdaq in mid-December. The initial public offering brought Insire almost NIS 20 million in capital gains.
For all its acquisitions, Inspire is not leveraged. Its shareholders equity is NIS 136 million, just one million shekels below its balance sheet as of the end of September 2005. As is the case of most holding companies, Inspire is trading below its shareholders equity, by a discount of 16%. Its market capitalization is NIS 115 million.
Real estate baron Nathan Hetz of Alony Hetz Properties & Investments (TASE: ALHE) owns an 8.1% interest in Inspire, which has a policy of buying into old-industry companies, mainly exporters, that are growing.