SCR, a Netanya-based company that makes and markets systems for monitoring dairy cows, has been acquired by the U.S. company Allfex for $250 million, under an agreement signed by the companies on Thursday.
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The seller was the private equity investor Tene Investment Funds, which controlled 51% of SCR, and SCR’s founders – Meir Rabinovich, Eyal Brayer, Dani Cohen and Avi Mor. Allflex, which will keep SCR as an independent unit after the acquisition closes, makes computerized systems for identifying and monitoring cattle and other types of farm animals.
“SCR will continue to develop and manufacture advanced solutions for field-monitoring dairy cows and dairy farms to improve efficiency, well-being and quality of milch cows. It will act as an independent unit within the group Allflex,” said SCR CEO Yariv Avisar.
He said the goal of being acquired by Allflex, which employs 1,300 people worldwide, is to expand to new markets and develop products faster and more comprehensively than it could as an independent company.
SCR was formed in 1976, starting with electro-mechanical devices to improve productivity at dairy farms and later moving into advanced cow-monitoring solutions based on the animals’ activity and rumination sensors. Despite its down-on-the-farm business, the acquisitions marks a major exit for Israel’s high-tech sector. Israeli technology has enabled the country’s cows to produce much more milk than other countries’ cows – 10% more per cow than in the U.S. and almost 50% more than in Germany.
The company employs some 330 people, 280 of them in Israel. The company says that more than 13 million cows are monitored and milked using the company’s technology, making it the biggest company in the industry.
Tene, which is managed by Ariel Halperin, first acquired a stake in SCR five years ago and gradually increased its share until it owned a majority.