Fortissimo Capital to Buy 30% of Water Treatment Company IDE
Fortissimo will acquire the stake from Israel-based Delek Group, which owns 50% of IDE through a subsidiary
For daily updates, subscribe to our newsletter by clicking here.IDE, founded in 1965, specializes in the development, engineering, construction and operation of desalination and industrial water treatment plants. The company is part of the technological turnabout that made Israel a global leader in desalination in an era where the Middle East is experiencing its worst drought in 900 years. 70% of Israel’s drinking water comes from desalination today, according to the country’s water authority, and IDE has built Israel’s three main desalination plants. The company has also built many projects overseas, including the Carlsbad desalination plant in California.
According to Delek’s filing, it will sell Fortissimo 60% of the subsidiary, Delek Infrastructures Ltd., according to a company valuation of $206 million. This gives IDE a company valuation of $412 million. Fortissimo and Delek will raise $80 million--$100 million in debt securities, which will be subtracted from the value of Delek Infrastructures for the deal. Fortissimo will pay Delek for 60% of the subsidiary according to the sum raised.