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Report Date : |
21.03.2014 |
IDENTIFICATION DETAILS
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Name : |
CARGAL FLEXIBLE PACKAGING LTD. |
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Formerly Known As : |
CARGAL TRADING LTD. |
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Registered Office : |
Mishmar Hasharon
Industrial Zone, MISHMAR HASHRON 4027000 |
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Country : |
Israel |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
30.01.1958 |
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Com. Reg. No.: |
51-017673-8 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of flexible packaging (printed packaging,
made of polyethylene, polyester and other plastic materials) for the
foodstuff and beverage industries. |
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No of Employees : |
764 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow But 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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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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 |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Natural gasfields discovered off Israel's coast since 2011 have brightened Israel's energy security outlook. The Leviathan field was one of the world's largest offshore natural gas finds this past decade, and production from the Tamar field started meeting all of Israel's natural gas demand in 2013. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands. In May 2013 the Israeli government, in a politically difficult process, passed an austerity budget to reign in the deficit and restore confidence in the government’s fiscal position.
|
Source
: CIA |
CARGAL FLEXIBLE
PACKAGING LTD.
Telephone 972 73 240 24 00
Fax 972 73 240 24 01
Mishmar Hasharon Industrial
Zone
MISHMAR
HASHRON 4027000 ISRAEL
A private limited company, incorporated as
such as per file No. 51-017673-8 on the 30.01.1958.
Originally registered under the name SIRON TRADING CO. LTD., which changed to CARGAL TRADING
LTD. on the 28.11.1993.
Until end of 2001 subject operated as
exporters of parent's (CARGAL LTD.) products. Between the beginning of 2002
till 31.05.2005 subject was dormant.
As of 01.06.2005 subject was reactivated in
its present form and line of business, completing 2 acquisitions:
1.
On 01.06.2005 of all business activities of YENA
(A.L.) INDUSTRIES LTD., a private limited company established in 1999;
2.
On 3.7.2006 of all business activities of A. GELLIS
& SONS LTD., a private limited company established in 1978 (originally
founded in 1963).
On the 05.04.2005 subject changed its name to the present name.
Authorized share
capital NIS 10,000.00, divided into -
10,000
ordinary shares of NIS 1.00 each,
of which 213 shares
amounting to NIS 213.00 were issued.
Subject is a fully owned by PLASTO SAC LTD., a public limited company,
whose shares are traded in the Tel Aviv Stock Exchange, controlled (81.2%) by
CARGAL LTD. (see below CARGAL’s shareholders).
In June 2007
CARGAL LTD completed the acquisition of 68% of publicly traded company PLASTO
SAC LTD. from Motti Hershko and Oded Feller, for NIS 122 million. In March
2008, CARGAL LTD. increased its holdings in PLASTO SAC to 79% (paying NIS 6.5
million).
After the
acquisition, CARGAL LTD. merged subject, which was its fully owned subsidiary,
into PLASTO SAC, based on company value of NIS 155.5 million for subject.
During May-June 2008 CARGAL LTD. purchased PLASTO SAC shares from the public,
and reached current holding.
CARGAL LTD. is owned by:
1.
C.I. CARDBOARD INDUSTRIES
LTD., 50.5%, controlled by A.B.N.D. INVESTMENTS LTD. (30%, controlled by Amihai
Blander and Nir David), QUICK PACK LTD. (15%, controlled by Gabi Nagar), Amiram
Levinger (7.5%), Yehoshua Levinger (7.5%), Raphael Ehud Menahem (7.5%) and
several other small investors from Israel and the USA,
2.
TAMA INVESTMENTS AND
FINANCE LTD., 26.3%, fully owned by CLAL INDUSTRIES
LTD.
(CI in short), bonds are traded on the Tel Aviv Stock Exchange, fully owned by AL DIVERSIFIED PARENT S.A R.L (part of ACCESS INDUSTRIES
Group), controlled by Leonard (Len) Blavatnik,
3.
S.H. SKY INVESTMETS (K.R.)
L.P., 11.9%, an investment fund managed by Zvi Yochman and Nir Dagan,
4.
BERESHIT Manof Funds (I and
II), 7.8%
5.
A.B.N.D. INVESTMENTS LTD.,
1.8%,
6.
Q.P.I. LTD., 1.7%.
1. Gabriel
(Gabi) Nagar, General Manager, also Vice Chairman and General Manager of PLASTO
SAC and General Manager of CARGAL Group,
2. Ophir Ben-Yaakov.
Yariv Palmon.
Manufacturers, exporters and marketers of flexible packaging (printed
packaging, made of polyethylene, polyester and other plastic materials) for the
foodstuff and beverage industries.
11% of sales in
2012 were for export (9% in 2011).
Among clients are leading local industries in the foodstuff field, e.g.
STRAUSS-ELITE, OSEM, CENTREL BOTTLING CO. (Coca Cola), JAFORA-TABORI, etc.
Among local
suppliers: PLASTO SAC (parent), DOR CHEMICALS, etc.
Operating from rented premises (offices, warehouses and plant), on an area
of 19,430
sq. meters, in the Mishmar Hasharon Industrial Zone, Kibbutz Mishmar Hasharon.
Having 366
employees serving PLASTO-SAC Group (flexible packaging segment of CARGAL Group)
as of end of 2012 (had 378 employees in the end of 2011).
Having 764
employees serving CARGAL Group as of end of 2012 (had 800 employees as of end
of 2011).
In its 2012 annual statements PLASTO SAC made an evaluation of subject at
NIS 148.8 million.
Subject's B/S:
NIS
(thousands)
31.12.2011 30.09.2012
ASSETS
Current assets
Cash
& cash equivalents 2,519 5,748
Customers 40,959 28,345
Other
debtors 5,869 2,763
Stock 19,640 26,676
68,987 63.532
Fixed assets, net 66,482 61,427
Intangible assets, net 59,956 59,656
195,425 184,615
======= =======
LIABILITIES
Current liabilities 78,072 77,709
Non-current liabilities 22,558 12,875
Equity 94,795 94,031
195,425 184,615
======= =======
PLASTO-SAC LTD.
current market value is US$ 19 million.
There are 4 charges for unlimited amounts
registered on the company’s assets (all assets), in favor of Bank Leumi
Le'Israel Ltd., Bank Hapoalim Ltd and Mizrahi Tefahot Bank Ltd. (last charge placed August 2013).
Financial data is included in the consolidated B/S of parent company
PLASTO-SAC LTD. which shows:
NIS
(thousands)
31.12.2012 31.09.2013
ASSETS
Current assets
Cash
& cash equivalents 33,318 15,732
Customers 110,447 126,198
Other
debtors 10,534 10,550
Other
assets 1,053 3,505
Stock 110,061 120,454
265,413 276,439
Non-current assets
Fixed
assets, net 178,922 155,130
Intangible
assets, net 65,181 64,904
Other non-current assets __1,926 2,022
246,029 222,056
511,442 498,495
======= =======
LIABILITIES
Current liabilities 268,930 177,214
Non-current liabilities 31,885 115,194
Equity 210,627 206,087
511,442 498,495
======= =======
REVENUES
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2010 2011 2012
Sales 111,626 115,272 107,701
Gross profit 11,077 10,659 9,238
Operating profit 6,196 4,774 2,983
Profits (losses) before taxes on income 1,216 1,410 (784)
Net profit (loss) 1,209 6,405 (763)
======= ======= =======
PLASTO-SAC
LTD.
Consolidated
Statement of Income
NIS
(thousands)
Year
ended 31.12
2010 2011 2012
Sales 375,697 408,559 393,282
Gross profit 52,154 56,771 50,065
Operating profit 17,243 18,518 8,558
Profits (loss) before taxes on income 5,235 9,872 (582)
Net profit
12,909 14,081 270
======= ======= =======
PLASTO-SAC LTD. Consolidated sales for the first 9 months of 2013
were NIS 296,825,000 (a slight decrease compared to the parallel period in
2012), making a gross profit of NIS 38,234,000, an operating income of NIS
7,896,000, ending with a net loss of NIS 1,809,000.
PLASTO-SAC LTD.,
parent company, developers, manufacturers, marketers and exporters of
sophisticated plastic goods and packaging solutions (e.g. carrier bags,
industrial bags, security bags, courier envelopes, heavy duty, shrink film,
lamination, pet food bags, high barrier bags, stretch hoods and materials
required for the tire and rubber industry), as well as polyethylene sheets for
the rubber and packaging industries. Also owns:
PLASTO SAC (U.K.)
LTD., 100%, marketing arm for U.K. and Ireland.
PLASTO-SAC IBERICA LTD., 100%, marketing arm for Spain and Portugal.
PLASTO-SAC MEXICO S.A., 100%, marketing arm for Latin America.
MOR PLASTIC
INDUSTRIES LTD., 100%, fully owns SIVAN PLASTICS
INDUSTRIES (1991) LTD., both manufacturers and marketers of plastic
packaging, e.g. bags, polyethylene bags and sheets.
CARGAL LTD.,
manufacturers and marketers of corrugated cardboard
boards and packaging, for foodstuffs, agriculture and industry products.
Also fully owns:
P.R.P PRE PRINT FOR CARDBOARD LTD., 100%, traders in inputs for the
packaging industries and manufacturers and marketers of wooden pallets.
TRIPLEX CONTAINERS (2003) LTD., 100%, manufacturers and marketers of wooden
and cardboard containers and packaging.
C.I. CARDBOARD shareholders hold shares in several other companies.
There are also
many other companies in CLAL INDUSTRIES Group.
Bank Hapoalim Ltd., Hagalim Branch (No. 584),
Herzliya, account No. 78889.
Bank Leumi Le’Israel Ltd., Central Branch (No.
800), Tel Aviv, account No. 28623/22.
A check with the Central Banks’ database did not
reveal any negative information regarding subject’s a/m accounts.
Nothing
unfavorable learned.
Despite our efforts, we were unable to speak with subject's officials,
as they were always unavailable. We left messages which so far remain
unanswered.
Subject is a very
long established business, though since the change in shareholding structure
subject changed the line of operation.
PLASTO-SAC Group
is one of the 3 largest local flexible packaging manufacturers.
CARGAL is one of
the 2 leading companies in the packaging field in Israel.
CARGAL LTD., established in 1959, is one in the 4 producers/ processors/ suppliers
of corrugated board area, on top of some 30 small
local manufacturers and importers from Turkey (around 2% of the market). Local
corrugated board market was valued at NIS 1.48 billion in year 2012 - 325,000
tons (NIS 1.45 billion, 325,000 tons in 2011). CARGAL Group holds 27% of local
market share in the corrugated cardboard field, and is one of the two largest
manufacturers (affiliated CARMEL also holds estimated 27% share), where the
large 3 suppliers holding together 75% of market share.
In November 2013, following a successful tender offer for the shares held
by the public, AL DIVERSIFIED PARENT reached full ownership of CLAL INDUSTRIES
(had 49.9%), paying NIS 1.25 billion for the 50.1% of shares.
CARGAL’s parent
shareholders CLAL INDUSTRIES LTD. is a leading
holdings and investment company, with holdings in various fields in the local
industry and trade: textile, cement, hi-tech and electronics, bio-technology,
communications, real estate and other industries. Among CLAL’s holdings is
another major holding in the paper and cardboard field – 60% in HADERA PAPER
LTD, local largest actor in the paper field, who also fully owns CARMEL CONTAINER SYSTEMS LTD., a main competitor of CARGAL in the carton
boards and packaging products.
Len Blavatnik is a Russian-American tycoon, who via ACCESS INDUSTRIES
has many holdings in various industries (as well as via other companies).
According to Forbes' The World's Billionaire's List of 2011, Blavatnik was
listed in 80th place with an estimated fortune of $10.1 billion.
In 2005 subject acquired the activities of YENA (A.L.) INDUSTRIES LTD.,
manufacturers of printed flexible packaging for industry and agricultural
products, in consideration of NIS 23 million.
In 2006 subject acquired all activities of the veteran
company A. GELLIS & SONS LTD., manufacturers of sophisticated flexible
packaging materials, mainly for the food and chemical industries, for NIS 130
million. A. GELLIS & SONS was known as one of the leading companies in the
packaging field.
During 2007
subject decided to close its second plant that was located in Ramla and to
transfer all its activities to the plant in Mishmar Hasharon.
As part of CARGAL Group expansion strategy, in May 2008 it completed the
acquisition of TRIPLEX CONTAINERS (2003) LTD., for NIS 32 million in total.
TRIPLEX was originally founded in 1951, and has some 80 employees.
On the 29.12.2013
parent company CARGAL redeemed the remaining bonds which were held by the
public and converted into a private limited company.
In November 2013 it was reported that CARGAL LTD. is seeking a buyer
according to a company value of around NIS 700 million (about 3 times a/m
valuation).
According
to the Chairman of the Packaging and Design Institute the branch sales by
packaging industries in 2010 amounted to over US$ 1 billion, some 70% are sales
to the local market, and some 30% sales for export.
There are some 120
packaging production plants in Israel, directly employing some 9,400 employees
as of 2010.
During 2010,
packaging in value of US$ 250 - 300 million was imported to Israel.
The Society of
Israel Plastic & Rubber Industry published data on the sector for 2011: The
sector’s turnover (both local and for export) reached US$ 5,075 million. Sales
breakdown: 30% of the Plastic & Rubber sector's sales are Household
Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9%
Industry, 5% Furniture, 4% - Compounds (rest is to other fields).
Sales for export by the Plastic and Rubber Industry in 2013 climbed by
7% from 2012 up to US$ 1,961 million, after it fell by some 3% in 2012 from
2011, returning to the growth trend in 2011 (by 15% from 2010).
According to the Central
Bureau of Statistics, import of Plastic and Rubber raw material for the local
industry in 2013 summed up to NIS 8,702.6 million, falling by 3.7% from 2012.
In 2012 import rose by 6% from 2011, keeping the growth trend from 2010 and
2009, though in a well lower pace.
Investment in imported machinery and equipment to the Plastic &
Rubber industry fell in 2012 3% from 2011, totaling NIS 512.1 million. This is
after rising by 30% and 8% in 2011 and 2010 from the previous year,
respectively, while level of import in 2010 was just fractionally higher than
2009, far from record 2007 & 2008 years.
Notwithstanding
recent (small) loss, considered good for trade engagements.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.13 |
|
|
1 |
Rs. 101.17 |
|
Euro |
1 |
Rs. 84.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
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.