Fortissimo and Kibbutz Afikim announced today that they have sold a 50% stake in dairy farm systems company S.A.E. Afikim to New Zealand-based cooperative Livestock Improvement Corporation (LIC). The enterprise value of Afimilk is $140 million.
Afimilk develops, manufactures and markets advanced systems to manage dairy farms and is active in more than 50 countries. For fiscal 2019, Afimilk’s revenue was $55 million, and its EBITDA was $9 million.
LIC is a farmer-owned co-operative that provides leading-edge genetics and solutions to improve the productivity and prosperity of dairy farmers. Frontera, the largest milk producer in the world, is one of LIC’s shareholders.
Fortissimo partner Yochai Hacohen said, “After augmenting its management and working closely with the Kibbutz and the company on a focused growth strategy, together we have been able to achieve great success in the market. Its new partnership with LIC will enable the company to further enhance its activities.”
Kibbutz Afikim and Afimilk chairman Arik Schor said, “The fruitful cooperation between Kibbutz Afikim and Fortissimo enabled Afimilk to achieve revenue and profitability growth. Afimilk will continue to operate from its headquarters in Kibbutz Afikim and together with its new strategic partner will strengthen its global presence and continue to expand its activities.”
Fortissimo is selling its entire 30.8% holding in Afimilk and the Kibbutz is selling 19.2% of the company. Fortissimo invested $5 million in 2010 and is expected to return approximately nine times its investment. The deal is expected to close during the second quarter of 2020.