The new brand: a deal worth NIS 112 million – the capital market

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And Spy Systems reports a deal worth up to NIS 112 million for the construction of solar facilities throughout the country. The merged company of the two will be called the new brand, and the renewable energy sector will be its main growth channel, so the current deal is a significant step in the new direction.

In the first phase, a spy will perform work that includes planning and execution of the facilities in the amount of NIS 55.8 million. In accordance with option agreements to expand the contract, the second phase will include additional works in the amount of NIS 55.7 million. Spy estimates that it will complete the first phase of works in the third quarter of 2021, while the second phase is expected to begin in the second quarter of 2021.

Progress in renewable energy activity joins the recovery of the infrastructure sector in which Brand and Spy operate. Recently, Margal has taken part in a number of projects in the field of transportation totaling NIS 64 million: work on Road 461 as part of the construction of the purple line of the light rail worth NIS 34 million, work on the highway project worth NIS 23 million, and work worth NIS 23 million. NIS 7 million on Road 85.

New Brand CEO Yaron Silesh recently said in an interview with BizPortal that “if there has been any slowdown in infrastructure activity, then these days we are already back to ourselves and estimate that in the fourth quarter we already see profitability of routine days after the work order panic ended.”

The new brand expects revenues of NIS 230 million by the end of 2021 and has accumulated orders of about NIS 300 million, according to a presentation to investors. As part of the merger, Abba and Liran Giladi, the owners of the private spy, will receive about 58% of the merged company. Keren Kedma will hold 24% and the public a balance of 16% (for more on the merger). Prior to the merger, Brand Industries is expected to raise NIS 6 million, led by Rosario Capital.

“In recent weeks we are beginning to see the fruits of moves that Spy started a long time ago, and we are pleased to report significant contracts in leading projects in the fields of transportation and energy,” he said Asa Giladi, founder, owner and CEO of Spy Systems. “I believe that the merger with Brand will allow us to further expand our operations in order to benefit from the significant growth experienced by the infrastructure sector in Israel.”

Spy was founded in 1968 and manufactures electrical systems for roads and interchanges, stations and tunnels, trains and airports. Its projects include Road 38, the train station and the train tunnel in Raanana-South and Ramon Airport. Spy’s renewable energy activities include design, procurement and execution (EPC) of electrical infrastructure, installation of systems and end equipment (panels), coordination and treatment with the electricity company and earthworks.