Business in Brief: Teva Leads Sharp Rise in Tel Aviv Shares

Little-known Krausz Metal Industries fetches $135 million from U.S. buyer ■ Boards approve merger of JOEL into parent company Equital ■ Israel Chemicals profit rose 16.5% in quarter

A Teva Pharmaceutical Industries building in Jerusalem, December 14, 2017.
\ Ammar Awad/ REUTERS

Little-known Krausz Metal Industries fetches $135 million from U.S. buyer

Krausz Metal Industries, a little-known company that makes pipe-coupling parts, was sold to an unnamed U.S. company for 500 million shekels ($135 million), TheMarker has learned. Operating out of an inconspicuous site in south Tel Aviv, the company is believed to have worldwide sales in the hundreds of millions of shekels annually thanks to its patented Hymax couplings, which are used to connect pipes, including those of different diameters. The company operates offices worldwide and a second plant in the United States. The company’s origins can be traced to a family business started in Slovokia in 1920 that was eventually re-established in Israel after the family moved to British-ruled Palestine in 1940s to escape the Nazis. Danny Krausz, who now owns and operates the business, is the third-generation scion of the family. (Assa Sasson) 

Boards approve merger of JOEL into parent company Equital

JOEL will be merged into parent Equital after the boards of the two companies approved the 2.5 billion shekel ($680 million) cash and share deal Thursday. The move will reduce the number of publicly traded tiers in the Equital group to just two, putting it into compliance with the Business Concentration Law. The two companies belong to a holding group widely believed to be controlled by Koby Maimon, although officially led by his associate Haim Tsuff. Yahak, the closely held company that controls the group, raised 400 million shekels this year to boost its stake in Equital to 69% and ensure its stake in the company isn’t diluted in the merger. Shares of JOEL ended 8.8% higher at 233.20 shekels. Equital Shares finished up 1% at 94.63 shekels. JOEL shareholders will get 1.836 Equital shares and 63 shekels in cash for each of their shares. (Eran Azran)

Israel Chemicals profit rose 16.5% in quarter

Israel Chemicals reported Thursday a 16.5%  increase in third-quarter net profit, boosted by higher prices for potash and phosphate fertilizers and rising sales of bromine products. The company earned an adjusted net profit of $134 million, up from $115 million a year earlier. Sales fell to $1.37 billion from $1.44 billion due to the divestment of some businesses. Discounting that factor, sales rose 7%. ICL said higher commodity and specialty prices more than compensated for the negative impact of lower sales volumes and higher raw materials, energy and transportation costs. “Our overall strong business momentum continued despite a temporary decrease in potash sales volumes due to delays, this year, in signing supply contracts with Chinese and Indian customers,” CEO Raviv Zoller said. ICL shares ended up 3.2% at 22.14 shekels ($5.98). (Reuters)

Teva leads sharp rise in Tel Aviv shares

Led by Teva Pharmaceuticals, Tel Aviv shares rose strongly in heavy trading Thursday. The TA-35 and TA-125 indexes both finished the session up about 1.5%, at 1,611.43 and 1,458.22 points, respectively, on turnover that reached nearly 2 billion shekels ($540 million). Among the biggest gainers, Nova Measuring Instruments finished up 8.9% at 89.49 shekels after it reported third-quarter net profit rose to 52 cents a share from 46 a year earlier. TowerJazz gained 3.5% to 59.71. Elbit Systems advanced 1.1 to 450 after it won a contract worth up to $68 million to supply marine drone patrol services for the European Maritime Safety Agency. Shapir Engineering lost 0.6% to 13.46 after it said it was selling its 22% stake in the Givot Olam energy partnership. Shares of Givot ended unchanged. Among losers, Nice dropped 1.7% to 387.80 and Gazit Globe lost 1.3% to 30.72. (Jasmin Gueta)