Just one day after the announcement of the sale of Tnuva to China’s Bright Foods, the Azrieli Group said it will sell the Tambour paints company to Singapore-based Kusto group.
The $500 million sale is an “as is” deal. The buyers have deposited an advance payment of NIS 70 million with Granite Hacarmel, of Azrieli.
Azrieli is expected to post a post-tax gain of NIS 50 million, while Granite Hacarmel’s post-tax gain will be about NIS 60 million, Globes reports.
Kusto is a privately-owned international industrial holding company with diversified interests, including in construction, real estate, building materials and energy. It is active in North America, Eastern Europe, and Southeast Asia, with a global turnover of $1.4 billion annually.
Daniel Kunin, managing director at Kusto, said that Kusto was not a financial investor. “We believe in long-term, sustained investment. Tambour is a leader in its field in Israel, and we chose it in order to turn it, with its employees, into a leading Israeli company in the global construction materials industry. This is our first investment in Israel.”
Menachem Einan, chairman of Granite Hacarmel and acting chairman of the Azrieli Group, said, “The deal for the sale of Tambour is the realization of the group’s strategy of focusing on its core activity in income-producing real estate and selling businesses not connected to this field. The buying group plans to invest in and expand Tambour’s activities in Israel and globally. I am sure that this deal is excellent for Tambour and its employees, and that under Kusto’s leadership the company will go on to great success.”
Azrieli owns office buildings in Canada and the U.S. through CanPro Investments. In Israel, it owns 13 shopping malls, several office towers, industrial buildings and stakes in energy, water and oil distribution companies.