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Report Date : |
04.10.2014 |
IDENTIFICATION DETAILS
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Name : |
G. E. MEDICAL SYSTEMS ISRAEL LTD. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
13.10.1998 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject,
operates as developers, manufacturers, exporters and marketers in six businesses:
molecular imaging (including nuclear imaging and positron emission
tomography), ultrasound, MRI, CT, HCIT and Respiratory & Sleep. |
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No of Employees : |
400 |
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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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
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Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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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. Cut diamonds, high-technology equipment, and
pharmaceuticals are among the leading exports. Its major imports include crude
oil, grains, raw materials, and military equipment. Israel usually posts
sizable trade deficits, which are covered by tourism and other service exports,
as well as significant foreign investment inflows. Between 2004 and 2011,
growth averaged nearly 5% per year, led by exports. 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. 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. The
economy has recovered better than most advanced, comparably sized economies,
but slowing demand domestically and internationally, and a strong shekel, have
reduced forecasts for the next decade to the 3% level. Natural gas fields
discovered off Israel's coast since 2009 have brightened Israel's energy
security outlook. The Tamar and Leviathan fields were some of the world's largest
offshore natural gas finds this past decade. The massive Leviathan field is not
due to come online until 2018, but production from Tamar provided a one
percentage point boost to Israel's GDP in 2013 and is expected to contribute
0.5% growth in 2014. In mid-2011, public protests arose around income
inequality and rising housing and commodity prices. Israel's income inequality
and poverty rates are among the highest of OECD countries and there is a broad
perception among the public that a small number of "tycoons" have a
cartel-like grip over the major parts of the economy. 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. Over the long term, Israel faces structural issues, including
low labor participation rates for its fastest growing social segments - the
ultra-orthodox and Arab-Israeli communities. Also, Israel's progressive,
globally competitive, knowledge-based technology sector employs only 9% of the
workforce, with the rest employed in manufacturing and services - sectors which
face downward wage pressures from global competition.
|
Source
: CIA |
G. E. MEDICAL
SYSTEMS ISRAEL LTD.
(Also known as GE
HEALTHCARE ISRAEL)
Telephone 972 4 857 82 22; 856 36 00
Fax 972 4 857 41 66
P.O. Box 2071 (3912001)
4 Hayozma Street
Industrial Zone
Tirat Carmel 3903204 Israel
A private limited company, incorporated as per file No. 51-268646-0 on
the 13.10.1998.
On the 22.01.2003, subject's subsidiaries, G. E. ULTRASOUND LTD. and
ELGEMS LTD. were merged into subject.
Subject is part of G E HEALTHCARE, a division of GENERAL ELECTRIC
COMPANY (NYSE: GE).
Authorized
share capital NIS 3,036,000.00, divided into -
3,036,000 ordinary shares of NIS 1.00 each, of
which 2,707,311 shares amounting to NIS 2,707,311.00 were issued.
1. VERSAMED MEDICAL SYSTEMS LTD., 99%,
2. G. E. MEDICAL SYSTEMS S.A., 1%, of France, both fully owned by
GENERAL ELECTRIC HEALTH CARE, the medical equipment division of GENERAL
ELECTRIC, the US based industrial giant.
In March 2008 GE
acquired VERSAMED for US$ 42 million.
1. Natan
Hermoni, Chairman and General Manager,
2. Ilan
Lifshitz,
3. Marcel
Laurence Kesselbrener.
G E HEALTHCARE
ISRAEL, i.e. subject, operates as developers, manufacturers, exporters and
marketers in six businesses: molecular imaging (including nuclear imaging and
positron emission tomography), ultrasound, MRI, CT, HCIT and Respiratory &
Sleep.
Many of the new
products, introduced to the market globally, by G E HEALTHCARE in recent years,
were developed and/or manufactured in Israel, in cooperation with the parent
company's international teams.
Also provides
Health Care IT services and solutions.
Over 95% of sales
are export.
Sales are to
medical institutions.
Among local
clients: SAREL LOGISTICS SOLUTIONS.
Among local
suppliers: SANMINA-SCI ISRAEL MEDICAL SYSTEMS, CPC SOLUTIONS, C.P.C.
HI-TECHNOLOGIES, KOMSEL, SHAAR GIORA, ACS MOTION CONTROL, COMPULAB, M.H.M.
FASTENERS, etc.
Operating from
rented headquarters and R&D Center, in 4 Hayozma Street, Industrial Zone,
Tirat Carmel, from facilities in 4 Etgar Street, Industrial Zone, Tirat Carmel
(the address you provided), and from 12 Hamada Street, Science park
Holon (a medical imaging equipment plant).
The Israeli
activities are in 8 development centers throughout Israel (some are in
subject's premises).
Having some 400
employees.
Subject is an
"Approved Enterprise" and as such enjoys tax benefits and State
incentives. In December 2002, the Israeli Investment Center (IIC) approved US$
1.1 million investment plan for the expansion of subject's plant in Tirat
Carmel.
In May 2004 the
IIC approved US$ 4.25 million investment plan for the expansion of subject's
plant in Tirat Carmel.
Other financial
data not forthcoming, however enjoying the backing of the global G E HEALTHCARE
of the GENERAL ELECTRIC Concern.
There are 10 charges
for unlimited amounts registered on the company's assets (computers equipment),
in favor of I.B.M. Group and leasing companies (last charge placed 2006).
Actual sales
figures not forthcoming.
According to
reports subject's 2012 sales were around NIS 1,200 million.
According to
reports subject's 2013 sales were around NIS 1,100 million.
GENERAL ELECTRIC
also operates in Israel via:
VERSAMED
MEDICAL SYSTEMS LTD., developers, manufacturers, exporters and
marketers of software based medical ventilators for life support machinery
COLSINT LTD., 50%,
developers, manufacturers, exporters and marketers of lenses for imaging cameras for nuclear medicine.
G E ISRAEL also markets products and
equipment in Israel via a network of distributors.
In November 2013 it was reported that GE is
opening a cyber center in Herzliya, under the name CYBER SECURITY LAB.
Bank data not
forthcoming.
Nothing
unfavorable learnt.
Despite our strenuous
efforts, we were unable to speak with subject’s officials, as they were always
unavailable to take our calls. We left messages.
In 1998, GENERAL
ELECTRIC acquired the DIASONICS division of the ELBIT Group, for a sum of US$
230 million, and transferred its activities into G. E. ULTRASOUND LTD.
In 1998, GENERAL
ELECTRIC, together with ELSCINT, erected a new medical equipment plant in Tirat
Carmel. The plant was operated by ELGEMS LTD.
In September 2000,
subject acquired ELSCINT shares (50%) in ELGEMS LTD., for a sum of US$ 30
million, and later both of G. E. ULTRASOUND and ELGEMS LTD. were merged into
subject.
As of January 2002
subject was merged to one legal entity, instead of 3 separate legal entities
(previously ELGEMS, GE ULTRASOUND, GEMS ISRAEL LTD.).
In July 2003, it
was reported that subject will develop an advanced MRI systems infrastructure
for the SHEBA MEDICAL CENTER.
In 2006 subject
established the Health Care IT unit (HCIT) by acquiring IDX of Herzliya.
In early 2008 GE
HEALTHCARE/ subject acquired Israeli healthcare company VERSAMED MEDICAL SYSTEMS LTD. according to a company value of
US$ 42 million. VERSAMED operated as developers, manufacturers,
exporters and marketers of software based medical ventilators for life support
machinery, intensive care units, home care, etc.
In January 2009
subject’s former General Manager Tovi Bachar won the Excellent CEO of a
Multi-national company in Israel award for 2008, for the achievements in development
of significant breakthrough systems. It was noted that the company’s sales in
the last 3 years grew by 16% in an annual average, while keeping an average
profitability rate of 12% per year.
In the beginning
of 2011 subject acquired the activities of ORBOTECH MEDICAL SOLUTIONS, research
and development and improving production processes for solid state gamma
radiation detectors for nuclear imaging applications based on CZT
crystal-growth technology, for US$ 15 million.
In July 2011 it
was reported that subject will establish an 8th, R&D center (for
cleantech and pre implementation research) in Tirat Carmel, with 12
researchers, investing some US$ 5 million.
In February 2013
it was reported that GE is closing its R&D center in Herzliya, laying-off
50 employees. This follows a layoff of 35 employees in January 2013 in the VERSAMED division in Kadima. According to the
report these moves were part of streamlining, and not due to losses.
In April 2014 it
was reported that GE together with CARE MEDICAL SERVICE (an Israeli company)
and private Israeli investors, will establish a radiology institute in
Switzerland with a total investment of US$ 13 million. GE, besides financial
investment will supply the machinery which is produced in Israel.
GE HEALTHCARE is a
US$ 18.2 billion unit of GENERAL ELECTRIC COMPANY that is headquartered in the
USA. Worldwide, GE HEALTHCARE employs more than 46,000 people serving
healthcare professionals and their patients in more than 100 countries. GENERAL ELECTRIC (GE) Concern had 2013
consolidated revenues amounted to US$ 146.04 billion. GE current market value
US$ 257.07 billion.
According
to the Central Bureau of Statistics (CBS) sales for export from the manufacture
of medical, dental and orthopedic instruments and supplies in 2011, 2012 &
2013 were US$ 745 million, US$ 865 million & US$ 1,003 million,
respectively.
Notwithstanding
the lack of updated data from subject's officials, considered good for trade
engagements.
Maximum unsecured
credit recommended several US$ millions.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.61.75 |
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1 |
Rs.100.07 |
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Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
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Analysis Done by
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SUB |
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Report Prepared
by : |
TPT |
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 |
-- |
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.