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MIRA INFORM REPORT
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Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
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Name : |
KOFFOLK (1949) LTD. |
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Formerly Known As : |
FOLKMAN & DR. KOFFLER LTD |
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Registered Office : |
P.O. Box 1098, Tel Aviv (61010), 2 Hanagev
Street, Airport City 70100 |
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Country : |
Israel |
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Financials (as on) : |
31.03.2009 |
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Date of Incorporation : |
30.06.1949 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, marketers
and exporters of fine chemicals and animal health & nutrition products |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
US$ 2,000,000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually Correct |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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Israel |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
KOFFOLK (1949) LTD.
Telephone 972 73 270
03 00
Fax 972 73
270 04 09
P.O. Box 1098, TEL AVIV (61010)
2 Hanagev Street
AIRPORT CITY 70100-ISRAEL
E-mail: markovits@koffolk.co.il
Web-site: www.koffolk.co.il
HISTORY & LEGAL FORMATION
A private limited company, incorporated as per file No. 51-005760-7 on the
30.06.1949.
Originally
incorporated under the name of FOLKMAN & DR. KOFFLER LTD., which changed to
the present one on the 14.03.1979.
In June 1992 subject took over all activities of its subsidiary, AGROZAN
LTD.
SHARE
CAPITAL
Authorized share capital NIS 43,000.00, divided into -
429,940,000 ordinary shares
(375,395,341 shares issued),
60,000 ordinary
"A" shares (all issued), all of NIS 0.0001 each,
of which shares amounting to NIS 37,545.5341 were issued.
SHAREHOLDERS
Subject is fully owned by PILLIP BROTHERS CHEMICALS INC., fully owned by
PHIBRO ANIMAL HEALTH CORPORATION ("PAHC") of the U.S.A., a private
limited company, controlled by Jacob (Jack) Bendheim (of the USA).
Note: Jacob (Jack) Bendheim himself holds 56
ordinary shares.
DIRECTORS
1. Jacob Bendheim, Chairman and
President of PAHC, of the USA,
2. Yehuda Markovitz,
3. Richard Johnson, of the USA,
4. Avner Birenboim,
GENERAL
MANAGER
Jonathan Bendheim
(also manages sister ABIC)
BUSINESS
Manufacturers, marketers and exporters of fine chemicals and animal health
& nutrition products.
In the fine chemicals field, subject supplies intermediates for
pharmaceuticals as well as for the agro-chemicals and cosmetics markets.
In the animal health & nutrition field, subject supplies active
veterinary pharmaceuticals, vitamin concentrates, mineral medicated and
non-medicated premixes as well as other specialty ingredients.
In March 2011 as part of a re-organization in the PAHC Group, ABIC
BIOLOGICAL LABORATORIES LTD. (and is fully owned subsidiary ABIC VETERINARY PROD
55% of subject's sales are for export.
Local distribution
is also carried out by ABIC VETERINARY PROD
Subject operates as manufacturing
sub-contractors for NUTRITION & HUSBANDRY OF LIVESTOCK LTD., suppliers of animal nutrition, feed supplements
and preventive medicines.
Among clients: AMBAR CENTRAL FEED MILLS, RANAN FISH FEED, MILOUBAR, etc.
Among local suppliers: NUMINOR - CHEMICAL INDUSTRIES, RINGEL BROS., DEAL
ENGINEERS, APPLIED CHEM, DORMEX TRADE AND INVESTMENTS CO., E.S.T. PROJECTS INDUSTRIAL SUPPLIES & SERVICE, etc.
Operating from:
1. Office premises in
2 Hanegev Street, Business Park, Airport City (serving subject and ABIC).
2. Plant and warehouses, owned by the shareholders, on a built area of 5,000
sq. meters (on a plot of 10,000 sq. meters), in 7 Magshimim Street, Kiryat
Matalon, Industrial Zone, Petach Tikva.
3. Owned plant, on an area of 76,000 sq. meters in the Industrial Zone, Ramat
Hovav (south of Beer Sheva).
4. ABIC operates from plant, warehouse and distribution center, on an
area of 3,000 sq. meters, in 3 Hamelacha Street, Western Industrial Zone,
Beit Shemesh
Having 170 employees in subject and 270 employees in the KOFFOLK Group
(including ABIC VETERINARY and ABIC BIOLOGICAL LABORATORIES) and another
some 20 employees in subsidiary in Brazil.
MEANS
Current stock is valued US$ 12,000,000 (was valued at US$ 11,000,000 in the
beginning of 2011, same as in mid 2009).
Owned property in Petach Tikva is valued at several US$ millions.
Subject is an “Approved Enterprise” and as such is entitled to State
benefits and incentives.
Consolidated B/S shows (fiscal year ends 31st March, last obtainable):
US$
(thousands)
31.03.2008 31.03.2009
ASSETS
Current assets:
Cash & cash equivalents 1,681 921
Accounts receivable 31,101 28,924
Inventory 17,007
13,103
49,789 42,948
Loans to related parties 18,490 21,677
Property, plant & equipment (net) 12,490 14,571
Other assets & deferred charges 234 213
81,003 79,409
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LIABILITIES
Current liabilities
Short term bank credit 35 -
Accounts payable and accruals: Trade 14,826 13,899
Other 3,487 3,535
18,348 17,434
Long term liabilities 4,363 4,928
Equity 58,292
57,047
81,003 79,409
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There are 10 charges for unlimited amounts registered on subject's assets
(fixed and financial assets), in favor of the State of Israel, Union Bank of
Israel Ltd., and leasing companies (last charge placed in December 2009).
SALES
Subject's consolidated sales:
·
2006 sales
claimed to be US$ 59,000,000, 60% of which for export.
·
2007 sales
claimed to be US$ 59,000,000, 60% of which for export.
·
2008 sales
claimed to be US$ 70,000,000, 60% of which for export.
·
2009 sales
claimed to be US$ 70,000,000, 55% of which for export.
·
2010 sales
claimed to be US$ 70,000,000, 55% of which for export.
·
2011 first
6 months sales claimed to be US$ 35,000,000, 55% for export.
Note: consolidated sales in the first half of 2011
(and earlier) do not include sales of ABIC, and only Brazilian subsidiaries.
For the year ended 30 June 2009, PAHC sales were US$ 550 million,
8% up from previous year. 84% of sales were from its Animal Health and
Nutrition business (of which subject is part of).
First 3 quarters (ending 31.03.2010) PAHC sales US$ 437.5 million.
Later data not forthcoming.
OTHER
COMPANIES
Subsidiaries (100%):
·
ABIC
BIOLOGICAL LABORATORIES LTD., developers, manufacturers, marketers and
exporters of vaccines and compounds for animals, mainly poultry vaccines, fully
own ABIC VETERINARY PROD
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KOFIMEX
LTD., manufacturers and marketers of veterinary medicines,
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AGROZAN
LTD., marketing of animals feed supplements,
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PLANALQUIMICA
INDUSTRIAL LTDA, Brazil.
PHIBRO ANIMAL HEALTH CORPORATION (PAHC), manufacturers and marketers of a
broad range of animal health and nutrition products to the poultry, swine and
cattle markets. Also a manufacturer and marketer of performance products for
the ethanol, wood preservation and personal care industries.
Other companies of "PAHC":
Animal Health & Nutrition Division (of which subject is part of):
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PRINCE
AGRI PROD
·
Performance
Products Division (previously known as the Specialty Chemicals Group and includes the
Distribution and Industrial Chemicals segments):
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PHIBRO-TECH,
INC. is a metal-based manufacturer, recycler, and marketer of performance
chemicals, serving the metal finishing, printed circuit board, catalyst, and
related industries,
·
PHIBROCHEM,
International Sourcing Specialist.
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FERRO
METAL & CHEMICAL CORPORATION LTD., manufactures and distributes on a
worldwide basis a range of specialty chemicals from its locations in the UK and
Germany,
·
PHIBROWOOD,
supplier of technologically advanced, environmentally friendly, wood
preservation treatment products
BANKERS
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Union Bank
of Israel Ltd., Main Branch (No. 063), Tel Aviv, account No. 827400/90.
· Bank Leumi Le’Israel Ltd., Kiryat Arie Business Branch (No. 670), Petach Tikva, account No. 84100/95.
· Mizrahi Tefahot Bank Ltd., Jabotinski Bnei Brak Branch (No. 431), Bnei Brak, account No. 151299.
A check with the Central Banks' database did
not reveal anything detrimental on subject’s a/m accounts.
CHARACTER
AND REPUTATION
On January 4th, 2011 The Ministry of Environment Protection
notified subject (and another 4 companies) that they must stop transferring
waste to the evaporation pools in Ramat Hovav by the end of the month, or be
exposed to legal procedures.
Apart from that, nothing unfavorable learned.
Subject is Iso 9002
certified.
Subject is a large and long established company, leading in their field.
Subject is a member of the PHIBRO ANIMAL HEALTH CORPORATION (formerly known
as PHILLIP BROS. CHEMICALS INC.), a global player in the veterinary field,
which operates around the world
and sells products to 2,500 customers in over 50 countries.
In December 2000, subject’s parent company acquired the medical food
additives division for animals of the
In the beginning of the 2000s subject acquired British company WYCHEM,
manufacturers of industrial chemical and pharmaceutical products.
It was reported in May 2008 that two thirds of subject's Ramat Hovav Plant
workers which have joined the General Workers’ Union have signed a new working
agreement on their behalf.
Subject is a member of the PHIBRO ANIMAL HEALTH CORPORATION (formerly known
as PHILLIP BROS. CHEMICALS INC.), a global player in the veterinary field,
which operates around the world
and sells products to 2,500 customers in over 50 countries and over 1,000
employees.
PAHC completed (April 2008) an
institutional placement of its shares (via London AIM Stock Exchange). PAHC
realized US$45 million of gross proceeds from the sale of new shares on AIM
representing 13% of the post-transaction equity, reflecting an equity valuation
of US$ 345 million. Shares of the PAHC as that date were held 70% by BFI CO.
LLC, a Bendheim family investment vehicle (controlled by Jack Bendheim), and
30% by other non-U.S. institutional investors including 3I QUOTED PRIVATE
EQUITY LIMITED., who invested US $97.2 million for a 29.9% interest in PAHC.
In February 2009, parent company PAHC completed the acquisition of ABIC VETERINARY
PROD
In June 2010 parent company PAHC, following a private share issuing (some 30%) to a private investor,
completed a successful purchase offer for its shares which were traded on the
AIM London Stock Exchange and shares were de-listed from trade and PAHC became
a private limited company.
The yearly value
of veterinary drugs produced by local companies estimated in mid 2007 amounted
to US$ 50 million, of which 50% were for export.
SUMMARY
Good for trade engagements.
Maximum unsecured
credit recommended US$ 2,000,000.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.61 |
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UK Pound |
1 |
Rs.75.32 |
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Euro |
1 |
Rs.65.68 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NB |
New Business |
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This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.