KNOWLEDGE IS THE HEART OF A SUCCESSFUL TRANSACTION.

COMMITMENT MAKES IT PUMP

Portofino Investments served as the exclusive Advisor in a stock allocation transaction between ORC and “Poalim Equity” – Bank Hapoalim’s investment arm.

Portofino Investments served as the exclusive Advisor in a stock allocation transaction between ORC and “Poalim Equity” – Bank Hapoalim’s investment arm. Following a previous transaction between the parties, also led by Portofino, where Poalim Equity invested in Reem Holdings, a subsidiary of ORC and a leading income-producing Real Estate company, the current transaction included a stock-swap, in which Poalim became a partner in ORC and positioned ORC as the dominant stakeholder in Reem. The transaction was designed by Portofino in order to facilitate Poalim’s strategic decision to expand its exposure to ORC, which holds additional assets and knowhow, and is considered to be one of the leading firms in its sector in Israel.

O.R.C Land

ORC specializes in several activities:

• Acquisition, improvement, and management of income-producing Real Estate properties (offices, commerce, hotels, and parking lots).

• Initiation and development of Real Estate for mixed uses, including: hotels, residential, and commercial assets.

• Planning and building of hotels in Israel and worldwide. Currently, ORC is planning, developing, and marketing over 16,000 residential units and 1,000 hotel rooms (most along the Tel Aviv coastline), as well as managing office and commerce spaces. Among ORC’s partners are some of the leading investment entities and Real Estate firms in Israel including, Poalim Equity, Leumi Partners – Bank Leumi’s Investment arm, Jordache Group and Israel Canada.

Poalim Equity

Poalim Equity is the investment arm of Bank Hapoalim, currently the largest bank in Israel. Since it was founded in 1921, Bank Hapoalim had a pivotal role in the rapid growth of Israel’s economy. The bank operates in Israel and abroad in all areas of banking services, including associated activities within the capital markets. Poalim Equity invests across various sectors, geographies and strategies, in addition to providing a wide range of advisory services to private client-companies and publicly traded firms.

Portofino Investments Advised Howden Israel in its Strategic Acquisition of Napa Personal Financial Management

11/02/2024

Portofino Investments advised Netanel group in the process of company spin-off and the split between two of its core business units

16/01/2023

Portofino Investments served as the exclusive investment banker in the acquisition of Zilumatic

29/07/2022

Portofino Investments served as the exclusive investment banker in the sale of REEM Group holdings to Poalim Equity.

11/04/2022

Portofino Investments served as the exclusive investment banker in the investment and acquisition of control in Avrot Industries by Shapir Engineering for the amount of $23 Million.

25/11/2021

Portofino served as the exclusive investment banker in the acquisition of minority stake in ICR (formerly Minrav Projects) at a company valuation of NIS 800 million, by the investment arm of Leumi Bank – Leumi Partners.

02/07/2021

Portofino' s Quarterly Deal

The Risks and Challenges of the US Banking System Revealed

04/04/2023

The Risks and Challenges of the US Banking System Revealed

Recently, cracks in the US financial system have been exposed, with thousands of small and medium-sized banks facing risks. Initially, a small crisis at a local bank in California was reported, but within days, it pushed the world's largest central banks to cooperate and provide liquidity to the financial system. The move came after the Swiss Central Bank provided a safety net of $110 billion to prevent the collapse of Credit Suisse, which could have led to a major upheaval in the global financial markets.

To tackle the crisis, the Fed introduced a new program to help banks called the Bank Term Funding Program (BTFP), which guaranteed all banks and financial institutions in the United States the possibility to receive loans from the Fed against approved assets. The loans were given for a period of one year and with an interest rate of about 4.2%. The program was immediately in demand, and in just two weeks, the Fed's balance sheet increased by $391 billion, erasing all the reductions made since October 2022.

The capital and collateral crisis of the banks, initially perceived as a small, local issue, is spreading. According to data from the Federal Deposit Insurance Corporation (FDIC), all US banks together have unrealized losses of about $620 billion on bonds, and the American banking system has a deficit of $2.2 trillion on the value of its assets, compared to the value recorded in the books, according to researchers from Columbia University.

The risks are significant, as even if only half of the depositors not insured by the FDIC, who hold about $9 trillion, were to withdraw their money, 190 banks would have collapsed. If 100% of the uninsured deposits were withdrawn, more than 1,600 banks would collapse, including very large banks.

The financial crisis of 2008 revealed the fragility of the US banking system, and the current situation suggests that more work is needed to ensure its stability. While the central banks have taken measures to address the crisis, the risks and challenges faced by the US banking system are significant and should not be underestimated.

Strong GDP growth and inflation data seen in Israel are prompting another bps of tightening the national interest rate through the rest of 2022

18/03/2022

Strong GDP growth and inflation data seen in Israel are prompting another bps of tightening the national interest rate through the rest of 2022

Israel’s annual inflation as well as economic growth topped all forecasts, as prices accelerated to their highest levels since October 2008, adding urgency to Israel Central Bank’s (ICB) cycle of interest-rate increases lately.
Spurred by a rise in the cost of fresh fruit, transportation and housing, price indicators jumped in July to an annual rate of 5.2% from the previous annual rate of 4.4% in June. On a monthly basis, price growth reached 1.1% in July, nearly twice the median prediction of analysts.
Although inflation has been "stuck" above the Israeli government target-range of 1% to 3% since the start of 2022, it is still far below levels in other developed countries.
For example, the US and UK are grappling with an annual inflation rate of 8.5% and 10.1%, respectively.
At the same time, surprisingly, Israel's GDP has grown in the second quarter of 2022 to an annualized rate of 6.8%, versus an expected 2.8% in a Reuters poll and after a revised downward contraction of 2.7% in the prior three months.
Compared to the second quarter of 2021, Israel's GDP has grown an impressive 7.4% - so far the highest growth recorded in any OECD country (Portugal 6.9%, Spain 6.3%, Canada 4.8%, USA 1.6%, and Germany 1.5%).
The Israeli Central Bureau of Statistics explains the strong growth in the second quarter, as a return to post-Covid routine which is driven by recoveries in sectors such as: Tourism, Aviation, Hospitality, Restaurant and Transportation services.
The surprising figures will most likely shape views on how aggressively the ICB may have to raise national interest rate during the following months.
A combination of high inflation rates and strong growth in GDP might provide the ICB with legitimacy to raise interest rate by 75 bps.
The ICB has already made efforts to "get-ahead of inflation" by delivering several interest rate increases, including the largest since 2011, as well as increasing the pace of monetary tightening with every raise.
With prices rapidly rising and discontent growing among Israeli citizens, the cost of living is Israel has become one of the main issues for politicians, who are preparing for the upcoming general elections on Nov. 1^st.

Consumer prices in the US, eurozone and UK rose in October at their fastest pace for more than 30 years

26/12/2021

Consumer prices in the US, eurozone and UK rose in October at their fastest pace for more than 30 years.

High and rising inflation is fast becoming a global trend as the combination of surging energy costs, strong demand and supply chain disruptions continue to push up prices by more than economists expected only a few months ago.
According to CNBC, The persistent high inflation have led many economists to question the Federal Reserve’s long-held view that the spike will be "transitory".
Following the U.S. CPI came in at an annual 6.2% in October, President Joe Biden has offered in his last speech multiple responses to spiking inflation: investigating gas prices, smoothing supply chains, touting benefit programs. None seems to offers Americans much immediate relief.
From Israeli perspective, the inflation rate unexpectedly slowed in October to 2.3% and remains significantly below the OECD average of 4.56%. According to Bloomberg, October’s data mean the central bank now has even less reason to raise interest rates from the record lows that have helped the economy weather the pandemic.

Cross-Border M&A Slowed in 2022 But Still Had Its Second-Best Year on Record

29/01/2024

By Martijn Peters
President of Globalscope,
Founder of DEX international M&A

Cross-border M&A fell to $1.57 trillion worldwide in 2022, down from an all-time high of $1.7 trillion in 2021, according to Pitchbook, a financial database. The number of international deals actually dropped to 9156, a total decline of 11%.
But from a broader perspective, it’s not particularly bad news. As a comparative trend, cross-border M&A transactions are still higher than they have been historically, in spite of the more recent—and potentially temporary—slowdown.
Current economic and political challenges have created a combination of factors that have fueled uncertainty, caution, and a bit of a “wait until the storm passes” attitude in the minds of buyers, sellers, and financial lenders worldwide.

Three trends particularly stand out:
1. Steadily increasing interest rates, combined with decreased availability of debt in certain regions, had an overall tempering effect on dealmaking last year, and to some extent, it still does in 2023.
2. Geopolitical events, most significantly the war in Ukraine, took a measurable toll on international transactions—and confidence.
3. Concerns about the impact of inflation worldwide add even more fear and hesitancy when it comes to cross-border M&A decisions.

Despite the recent slowdown, long-term trends in cross-border M&A are clearly upward

Long-term growth in cross-border M&A is driven by two major buyer groups: 1. Large corporations who continue to expand their businesses into foreign territories and find that M&A is a faster and more certain way to gain access to new markets, rather than going “greenfield”. 2. Private equity firms also increasingly deploy international buy-and-build strategies to accelerate the value creation process, especially after having acquired a first-platform company in a given industry. PE firms have learned that breaking into new markets and turning a national leader into an international player has a directly positive effect on valuation levels when selling the company.

New Challenges, New Opportunities

This is not to say, however, that everything is rosy in the international M&A arena, nor is it by any means simple. International mergers and acquisitions are driven by various factors, like reducing competition, penetrating new markets, diversifying product lines or services, and gaining rights to intellectual property such as patents, trademarks, and copyrights. As a result, international M&A often follows trade. Most cross-border transactions take place between countries that do a lot of business with each other. And from a mid-market perspective, I estimate roughly 1/3 of M&A transactions are cross-border in the sense that the buyer and seller come from different countries. This number is typically higher in smaller countries like The Netherlands that are more accustomed to working internationally than their larger counterparts, such as the United States. Manufacturing, consumer, and professional services have historically been sectors with high volumes of cross-border M&A, but during the last decade, technology, media, and telecom (TMT) have shown the largest increase in the number of deals and value. The bottom line is that cross-border M&A adds further challenges to the already complex process that characterizes dealmaking. Cross-border transactions bring additional risk and complexity due to differences in cultural, political, economic environment, law, tax rules, and accounting, not to mention disparities in corporate culture itself. But there is another bottom line to also consider. International M&A can offer a level of financial rewards and business growth that cannot be achieved by regional or national deals alone. More and more, M&A opportunities for mid-market companies are becoming increasingly international. Cross-border M&A growth is good news for mid-market buyers and sellers who are looking for more strategic deals, increased market share, and worldwide expansion and growth. # # # Martijn Peters is Founder and Managing Director of DEX international M&A, a Netherlands-based company specializing in structuring and managing M&A transactions. He has broad experience as an international deal maker and currently serves as President of Globalscope Partners.

Paramax Advised on the Sale of Thermopatch Corporation to Avery Dennison

27/03/2023

Paramax Advised on the Sale of Thermopatch Corporation to Avery Dennison

Thermopatch Corporation (“Thermopatch”) (www.thermopatch.com) is a global leader specializing in labeling, embellishments, and transfers for textiles
primarily to the industrial laundry, workwear, hospitality, and sports markets. For over 80 years, Thermopatch has positioned itself as a premier player in the development, innovation, and manufacturing of garment branding and labeling solutions. The Company sells its products worldwide with manufacturing and sales locations in the US, Netherlands, United Kingdom, Poland, France, Germany, Canada, and China.

The buyer, Avery Dennison Corporation (NYSE:AVY) (“Avery Dennison”) (www.averydennison.com), is a global materials science company specializing in the design and manufacture of a wide variety of labeling and functional materials. The company’s products, which are used in nearly every major industry, include pressure-sensitive materials for labels and graphic applications; tapes and other bonding solutions for industrial, medical, and retail applications; tags, labels, and embellishments for apparel, as well as radio frequency identification (RFID) solutions serving retail apparel and other markets. The company employs approximately 36,000 employees in more than 50 countries.

As a result of this acquisition, Thermopatch will become part of the Avery Dennison’s Retail Branding and Information Solutions (RBIS) Apparel Solutions division. The acquisition will allow the combined business to build on collective industry knowledge, leveraging the company's know-how, quality, and service to drive growth in external embellishments.

The US member, Paramax from GlobalSCope served as the exclusive M&A advisor to Thermopatch on this transaction. Paramax has extensive experience advising manufacturers in the labeling and printing & packaging markets, serving a variety of end markets, with a track record of highly successful outcomes at premium valuations. Paramax Corporation is a FINRA-registered investment banking firm focused on M&A transaction advisory services.
For more information, please contact the Paramax deal team.

Carlsquare advised laser manufacturer Photon Energy on its sale to Hitachi Industrial Equipment Systems

16/08/2022

Carlsquare advised laser manufacturer Photon Energy on its sale to Hitachi Industrial Equipment Systems

Hitachi Industrial Equipment Systems Co. announced that it has acquired 100% of the shares in Photon Energy GmbH from the three founding shareholders and Bayerische Beteiligungsgesellschaft mbH.

For more than 40 years, Hitachi Industrial Equipment Systems has successfully developed its coding and marking business with continuous inkjet printing technology, to serve a variety of product identification needs in food & beverage, cosmetics, pharmaceutical, electronic and automotive parts industries in well over 110 countries worldwide.

Increasing demand for precise, indelible coding and environmentally friendly products expands the business opportunities for a wider range of coding technology in particular laser markers.

Photon Energy, since its foundation in 2010, has established its reputation as technology leader in the development, research and sales of ultra-short pulse (USP) laser, sources and marking systems. Their strengths are in the fields of medical devices, electronics and semiconductor industries primarily in Europe but with plans to further expand its sales in Asia and North America.

Hitachi Industrial Equipment Systems’ goal in this acquisition is to add Photon Energy’s innovative core laser technology and application know-how to its industrial equipment portfolio. By doing so, Hitachi will strengthen its competitiveness in the coding and marking field by merging its strengths with Photon Energy’s superior laser technology expertise.

Yasuhiro Takeuchi, President and Director at Hitachi Industrial Equipment Systems, said: “I am very pleased to announce that Hitachi has acquired Photon Energy. Photon Energy’s excellent technologies will help Hitachi to gain access to wider segments and accelerate growth in the coding and marking business in global market.”

Dr Hans Amler, CEO of Photon Energy GmbH, said: “We are very excited to challenge further growth of our business in the global market as a member of the Hitachi family.”

Carlsquare acted as the exclusive financial advisor to Photon Energy GmbH and supported the management and shareholders in identifying the ideal partner during a structured global screening process, including marketing materials preparation, due diligence process coordination, and transaction negotiations.

Osprey Capital Partners Inc. is pleased to announce it has assisted Dynamic Technologies Group, a publicly traded company on the TSX Venture Exchange (DTG/TSXV), in selling its Parr Metal Fabricators subsidiary to Dynamic Machine Corp., both of Winnipeg.

29/12/2021

Osprey Capital Partners Inc. is pleased to announce it has assisted Dynamic Technologies Group, a publicly traded company on the TSX Venture Exchange (DTG/TSXV), in selling its Parr Metal Fabricators subsidiary to Dynamic Machine Corp., both of Winnipeg.

The Client

Dynamic Technologies, a designer of media-based attractions and ride systems for the global theme park industry and other entertainment destinations, has operations in Canada, the U.S., and China, but sells its products around the world.
Its Parr subsidiary, which was founded in 1975, is a custom metal fabricator serving the pulp and paper, mining, and food industries.
It also provides a variety of fabrication to the construction and truck trailer repair sectors.

The Objective

After Dynamic Technologies decided to focus solely on its core business, it engaged Osprey Capital and Hawkbridge to sell Parr through a highly competitive process to a specific group of strategic and financial buyers. The intent was to maximize the return for Parr.

The Result

Osprey Capital delivered the pool of potential suitors and the auction generated the highest possible sale price for Parr.

Dynamic Machine was ultimately selected as the ideal suitor largely due to its stellar reputation as a metal fabricator. Parr is an accretive acquisition for Dynamic Machine and its 40-year legacy of exemplary customer service will continue under its new corporate umbrella.

KNOWLEDGE IS THE HEART OF A SUCCESSFUL TRANSACTION.

COMMITMENT MAKES IT PUMP

Portofino Investments served as the exclusive Advisor in a stock allocation transaction between ORC and “Poalim Equity” – Bank Hapoalim’s investment arm.