Bermad Water Control Solutions Looking to Float Stock

The kibbutzim hope to achieve a company valuation of NIS 350 million

Kibbutz-owned Bermad Water Control Solutions is preparing to float either in London or in Tel Aviv. The company is owned by Kibbutz Evron (75%) and Kibbutz Sa'ar (25%).

The kibbutzim hope to achieve a company valuation of NIS 350 million, at least, for the maker of automatically activated hydraulic valves, sources said.

No final decision has been made yet as to where to float, but the company has started preparing anyway.

The firm's valves are used in water, fuel and fire extinguishing systems.

The company has been profitable since its establishment 40 years ago.

Year 2006 sales are expected to reach $63 million. Its sales have been growing steadily - in 2001 sales were only $43 million, and rose to $45 in 2002.

Today 90 percent of production is for export, and the company has nine subsidiaries around the world, and does business in over 80 countries.

Bermad has 400 workers in Israel and another 100 overseas.

Five years ago the company examined the possibility of bringing in strategic investors from overseas, but the Kibbutzim decided against sharing control at the time.

If the offering comes off, then part of the proceeds will be used to purchase other businesses to enable the firm to grow.