The family of industrialist Stef Wertheimer, who sold his flagship company Iscar to Warren Buffett more than a decade ago, is on their way to a second exit, selling their Servotronix Motion Control at a $170 million valuation, TheMarker has learned.
Sources declined to name the buyer, other than to describe it as a company traded on the Shanghai Stock Exchange. The terms of the sale have been agreed on and await approval by the Antitrust Authority, which is expected in the next few weeks, they said.
Under the terms of the deal, the buyer will pay $50 million for all of the 30% stake in closely held Servotronix controlled by Ruth Wertheimer, Stef Wertheimer’s daughter. The Chinese buyers will also take half of the remaining shares, which are owned by executives and employees led by the company’s founder and CEO Ilan Cohen.
Sources said the buyer was also taking an option for the remaining shares of the company, with the valuation hinging on Servotronix’s business performance. They estimated that could lift the value of the company to as much as $200 million.
The Wertheimers are best known for Iscar, a maker of cutting tools bought by Buffett in a two-stage deal in 2006 and 2013 for some $6 billion, which made them one of Israel’s wealthiest families.
But the family has made other investments over the years through its Main 7 investment vehicle, including a $6 million investment in 2006 in a semiconductor startup called Percello sold to the U.S. company Broadcom four years later for $100 million.
Based in Petach Tikva, Servotronix, formed in 1991, makes automation technology, in particular hardware and software used for motion control in such applications as medical instruments, printing and renewable energy devices.
The company does enough business in China for its website to appear in Chinese and English. Another of its big shareholders if Gidon Argov, chairman and son of Shlomo Argov, the late Israeli ambassador whose attempted assassination in 1982 set off the First Lebanon War.