New competitor to Snow? Shaniv took over Opel Packaging for NIS 26 million – the capital market

Manufacturer of cleaning and toiletries products,

Shaniv
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Reports this morning that it has signed a partnership agreement between the company and Opel Packaging, in which, in exchange for NIS 25.5 million, it took over 51% of Opel’s share capital.

Shaniv, whose leading brand is Touch, specializes in the production of paper products, cleaning, toiletries, cosmetics, automotive and industrial products. Opel, from which it acquired two 51% of the shares for NIS 25.5 million, employs about 100 people and is engaged in the production, import, packaging, marketing and distribution of aluminum foil molds, nylon products, packaging and paper.

“As part of the partnership deal, Shaniv will expand its product and service basket, expand its sales network and enjoy rapid entry into new areas of activity,” the company said. “Opel will continue to operate in its current format, both commercially and operationally.”

In a letter from the CEO of Shaniv, Passover Brent Brent told the company’s employees and managers about the completion of the deal, writing that “the completion of the deal promotes the company’s vision to be a leading manufacturer and marketer in the field of consumer products in Israel.

“Opel is a quality, veteran and reliable manufacturer and its products increase the product basket in which the company is active. Opel will continue to operate with existing employees and managers who do their job faithfully and with great success.”

In response to the acquisition, the company’s share rose by 3%, to a level of NIS 6.4 per share. Although since the beginning of the month the stock has fallen by 2.4%, since the beginning of the year it has risen by more than 8% and in the 12 months it has risen by 24%. The company’s management expects the annual growth average (CAGR) to rise in double-digit violations in the coming years, after the stock has already risen by 130% since the beginning of 2019.

“Compete with the biggest players in the market”
In an interview with BizPortal, Brent says Because the acquisition that will be completed soon, will definitely increase the capacity basket of the 2 companies, which at the moment, will remain completely separate. “The company’s vision is to be a leading manufacturer in the field of consumer products in Israel,” said Brent.

“We are very active in the paper field, and currently the second largest player in Israel. The acquisition increases our product portfolio. The company employs 100 workers in the south which is also included in our vision to develop blue and white and employ in the periphery.

How will the synergy between the 2 companies be reflected?
We will operate as two arms. At the moment, everything there continues as usual, with the managements also separate. I think the ability of a group like ours, in the field of sales and marketing and trade, will give us and them added value, which will help both companies grow.

Where does the money come from? Did you recruit?
“Everything is funded from the company’s own resources.”

Do you want to compete with market players?
“I do not see a problem with that. Yes, we will definitely compete.”

What is your vision for the next 5 years?
“Our vision is to see double-digit growth and we expect it to continue. We’re all happy with the new partners and excited to expand the opportunities in the market. We’re always looking for more opportunities, but right now there’s nothing at stake.”