The Ticker: Spuntech Wins $65 Million Order for Non-woven Fabric

Ceragon wins $50 million order; Frutarom to buy Peruvian company; Itamar Medical sees resurgent growth; Tel Aviv shares end mixed on lower world markets.

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At the entrance to the Tel Aviv Stock Exchange, 2011.
At the entrance to the Tel Aviv Stock Exchange, 2011.Credit: Bloomberg

NR Spuntech Industries, a maker of non-woven fabrics used for disposable diaper and medical purposes, said on Tuesday it had won a giant $65 million contract to be rolled out over the next two years. The company, which operates two plants in Israel and a third in North Carolina, said the contract was a follow-on order from a major, unnamed customer - but 50% bigger than the original one from 2012-14. Spuntech will be adding a second U.S. production line in the third quarter of next year at a cost of $50 million, which will increase its current capacity of 28,000-36,000 tons annually by an additional 22,000.The company had sales of $70 million in the first half of this year, generating earnings before interest, taxes, depreciation and amortization of $10.5 million. Spuntech shares closed up 3.3% at 7.39 shekels ($2) in Tel Aiv. (Yoram Gabison)

Ceragon wins $50 million order

Ceragon Networks, a maker of wireless communications technology, said on Tuesday it had received follow-on orders from an unidentified telecommunications company operating in Asia and Africa, bringing the total value of the contract this year to $50 million. In Africa, Ceragon said its Evolution Long-Haul solution would be used to expand the operator’s mobile reach across eight national markets. In Asia, Ceragon’s all-out-door expertise and FibeAir solutions will be used to both expand 3G services and upgrade to high-speed 4G networks. Ceragon cited research showing the African mobile broadband market growing rapidly, with mobile broadband penetration due to increase from just 95 million subscribers last year to 522 million by 2017. Asia will add more than 1.5 billion users during the same period to a total of 2.7 billion. Ceragon shares jumped 8.5% to close at 9.14 shekels ($2.48) in Tel Aviv. (Yoram Gabison)

Frutarom agrees to buy Peruvian flavors company

Frutarom, maker of flavors and fine ingredients, said Tuesday it had agreed to buy the flavors and natural food colors division of Peru’s Montana for $28.5 million in cash as it expands in Central and Latin American. Frutarom said it would also be assuming $6.5 million of debt and would be making milestone payments over the next 18 months based on any improvement in Montana Food’s gross profits. Sales of flavors and food colors reached $29.5 million last year, with another $23 million coming from services and other operations. The acquisition follows Frutarom’s purchase of Guatemala’s Aroma and Brazil’s Mylner over the last two years. “Montana Food is our second acquisition this year and we are working toward identifying and executing additional strategic acquisitions,” said Frutarom CEO Ori Yehudai. Frutatom shares fell 0.5% to end at 93.50 shekels ($25.36) in Tel Aviv. (Yoram Gabison)

Itamar Medical sees resurgent growth

Itamar Medical expects to end three years of sluggish growth after signing three new sales agreements in the U.S. and Japan, CEO Gilad Glick told Reuters on Tuesday. The maker of devices for testing sleep and cardiovascular problems with a fingertip sensor, is also benefiting from a growing awareness of sleep disorders, which is a $3.5 billion market in the U.S., Glick said. Glick would not give a growth forecast, but he said the bulk of his personal compensation would only be paid if Itamar grows at least 40% annually. “I expect to sign two to three new sales deals each year,” he said. Shares of Itamar, which on Tuesday unveiled a pediatric version of its home sleep test, edged down 0.06% to 1.71 shekels (46 cents) in Tel Aviv. (Reuters)

Tel Aviv shares end mixed on lower world markets

Tel Aviv shares ended mixed on Tuesday as world markets were weighed down by disappointing economic data from the U.S. and Europe. The TA-25 lost traction by mid-day, but managed to squeeze out an 0.08% gain to end at 1,458.99 points. The TA-100 didn’t, ending down 0.07% at 1,305.99. Turnover was a heavyish 1.27 billion shekels ($340 million). After four sessions of steep losses that shaved 10.9% off its share price, Israel Chemicals rebounded to finish 1.2% higher at 26.50 shekels. But IDB development ended 4.1% lower at 4.31 shekels, a day after the government warned it that a license for its now controlling shareholder to own Clal Insurance was in jeopardy. Clal Insurance fell 3.1% to a close of 62.55 shekels. Delek Group added 2.6% to 1,395 shekels. (Eran Azran)

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