Two metals subcontracting companies have merged: Agam Tefen of the Tefen industrial zone has acquired Arazim of Carmiel for about $10 million.

The deal, completed two weeks ago, was financed by the Plenus Mezzanine fund. This is its first investment.

In exchange for the loan, Plenus Mezzanine received warrants in the merged company, but it is not saying how many. Based on the company's business plan it expects to realize  about 20% profit on the warrants, says the fund's CEO, Yossi Riback.

The plan is for the merged company to float in two or three years at a fondly anticipated value of NIS 250 million to NIS 300 million.

Agam Tefen's sales amounted to NIS 70 million in 2006. Its customers include Elbit Systems, Camtek, Orbotech, HP, Kodak, Rafael and the Israel Aircraft Industries.

The merged company's sales are expected to reach about NIS 150 million in 2007.