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MIRA INFORM REPORT
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Report No. : |
504045 |
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Report Date : |
24.04.2018 |
IDENTIFICATION DETAILS
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Name : |
TUTTNAUER LTD. |
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Registered Office : |
Har Tuv B, Hesegim Industrial Park, Mateh
Yehuda Regional Council Israel |
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Country : |
Israel |
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Date of Incorporation : |
29.01.1960 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Designers,
manufacturers, importers, marketers and exporters of hospital and laboratory equipment,
scientific equipment for hospitals and laboratories, specializing in
autoclaves for the fields of sterilization, and infection control. |
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No. of Employees : |
380 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Israel |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced free market economy. Cut diamonds,
high-technology equipment, and pharmaceuticals are among its leading exports.
Its major imports include crude oil, grains, raw materials, and military
equipment. Israel usually posts sizable trade deficits, which are offset by
tourism and other service exports, as well as significant foreign investment
inflows.
Between 2004 and 2013, 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. Israel's economy
also weathered the 2011 Arab Spring because strong trade ties outside the
Middle East insulated the economy from spillover effects.
Slowing domestic and international demand and decreased investment
resulting from Israel’s uncertain security situation reduced GDP growth to an
average of roughly 2.8% per year during the period 2014-17. 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 in the last decade. Political and regulatory
issues have delayed the development of the massive Leviathan field, but production
from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in
2014. One of the most carbon intense OECD countries, Israel generates about 57%
of its power from coal and only 2.6% from renewable sources.
Income inequality and high housing and commodity prices continue to be a
concern for many Israelis. 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. Government officials have called for reforms to
boost the housing supply and to increase competition in the banking sector to
address these public grievances. Despite calls for reforms, the restricted
housing supply continues to impact the well-being of younger Israelis seeking
to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed
prices and customs tariffs for farmers kept food prices high in 2016. Private
consumption is expected to drive growth through 2018 with consumers benefitting
from low inflation and a strong currency.
In the long term, Israel faces structural issues, including low labor
participation rates for its fastest growing social segments - the ultraorthodox
and Arab-Israeli communities. Also, Israel's progressive, globally competitive,
knowledge-based technology sector employs only about 8% of the workforce, with
the rest mostly employed in manufacturing and services - sectors which face
downward wage pressures from global competition. Expenditures on educational
institutions remain low compared to most other OECD countries with similar GDP
per capita.
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Source
: CIA |
Company name & address
TUTTNAUER LTD.
Telephone 972 2 990 46 11; 990
46 00
Fax 972 2 990 47 00
Email: info@tuttnauer.com
Physical
Address
Har Tuv B, Hesegim Industrial Park
Mateh Yehuda
Regional Council Israel
Mailing Address
P.O. Box 170
Beit Shemesh 9910101
Israel
HISTORY
& LEGAL FORMATION
Originally established as a non-registered
business in 1950 by Late Zeev Tuttnauer, grandfather of Ran Tuttnauer,
continuing activities he founded in
Converted into a private limited company,
under the style ZEEV TUTTNAUER & SON LTD., incorporated as per file No.
51-022893-5 on the 29.01.1960.
In 1993 published a prospectus offering
shares to the public, raising a sum of NIS 45 million, according to a company
value of US$ 60 million.
In parallel, converted into a public limited
company and registered as such as per file No. 52-004002-3 on the 06.10.1993.
On 31.12.2009, following a successful tender
offer to the public, subject's shares were de-listed from trade, and subject
re-converted to a private limited company (keeping the same latter registration
number).
SHARE
CAPITAL
Authorized share
capital NIS 10,000,000.00, divided into -
10,000,000 ordinary
shares of NIS 1.00 each, of which 7,331,703 shares amounting to NIS
7,331,703.00 were issued.
SHAREHOLDERS
Subject is fully
owned by F.F.4 - TUT HOLDINGS LIMITED PARTNERSHIP, owned by FORTISSIMO CAPITAL FUND, an investment fund, managed by Yuval Cohen, Eli
Blatt, Shmoulik Barashi, Yochai Hacohen, Marc Lesnick and Yoav Hineman.
In September 2017 FORTISSIMO acquired the shares from the founding shareholders, Tuttnauer family,
in consideration of US$ 100 million.
DIRECTORS
1. David Reiss, Chairman,
2. Shmoulik Barashi,
3. Yuval Cohen.
GENERAL MANAGER
Nir Kinori
BUSINESS
Designers,
manufacturers, importers, marketers and exporters of hospital and laboratory
equipment, scientific equipment for hospitals and laboratories, specializing in
autoclaves for the fields of sterilization, and infection control.
Group also
supplies technical training courses for repair technicians,
In the autoclave
niche (autoclave sterilizers and plasma sterilizers), subject produces “table
autoclaves” for clinics, dentists and such, as well as “industrial autoclaves”
for large research institutes, hospitals, food factories and pharmaceutical
industries.
Also importers and
marketers of medical equipment and computer peripherals.
Local agents of
NETZCH-BELIMED.
90% of sales are
export, to over 140 countries. Most sales are to the USA.
World sales are
through subsidiaries in Europe and the U.S.A. and through local agents in the
Far East, Australia and South America. Equipment is installed in 350 thousand
clients, mainly clinics and laboratories, and to larger institutes - hospitals
pharmaceutical production and research institutes and universities, such as
Chicago University, Cornell University, and more.
Among local
suppliers: MASHAF TECHNICAL SUPPLIES, INTERNATIONAL PROCESS CONTROLS CO., etc.
Operating from
owned premises, offices and plant, on an area of 30,000 sq. meters (on which
built area of 13,000 sq. meters), in the Har Tuv B'1, Hesegim Industrial Park,
in the Regional Council Mateh Yehuda (near Beit Shemesh). Also operating from
branches in the USA (owned premises on an area of 4,000 sq. meters), Europe -
Netherlands (rented premises on an area of 300 sq. meters) and from an assembly
and servicing plant (400 sq. meters) in China.
Website: www.tuttnauer.com
Having 380 (had
some 400 employees in end of 2016).
MEANS
Subject was sold (100%) in September 2017 to
FORTISSIMO Fund based on a company value of US$ 100 million.
The purchase offer
(for subject’s shares then held by the public) in end of 2009, was based on a
company value of NIS 166 million.
Current stock is
valued at US$ 25 million (was valued at US$ 25 million in the 2nd
half 2016).
Subject is an “Approved
Enterprise” and as such enjoys tax benefits and State incentives. In 2000 the
Israeli Investment Center (IIC) approved a US$ 690,000 investment plan for the
expanding subject’s plant (then it was in Jerusalem).
In 2002 IIC
approved subject’s plan to expand its plant in Beit Shemesh, for a sum of US$
2.5 million.
During 2005,
subject completed the move to its new 13,000 plant in Beit Shemesh, with total
investments of NIS 68 million (including acquired land).
There are 5
charges for unlimited amounts registered on the company's assets (all assets,
including financial and fixed assets), in favor of Bank Leumi Le'Israel Ltd.
and The First International Bank of Israel Ltd. (last 3 charges placed August
2017, prior charges placed in 2002 and 2007).
REVENUES
2015 sales claimed
to be US$ 66,000,000, of which 90% were for export.
2016 sales claimed
to be US$ 69,000,000, of which 90% were for export.
2017 sales claimed
to be US$ 70,000,000, of which 90% were for export.
From media reports published at the time of
subject’s acquisition by FORTISSIMO, estimated EBITDA is 10% - 15% of turnover.
OTHER
COMPANIES
EYTAN ENGINEERING & SERVICES (OF THE
TUTTNAUER GROUP) LTD., 90%, importers and marketers of medical, laboratory and
Uninterruptible Power Supply (UPS) equipment, computer peripherals and medical
allied equipment.
TUTTNAUER EUROPE
B.V., 100%, Netherlands, marketing company,
TUTTNAUER U.S.A
CO. LTD., 100%, USA, marketing company.
FORTISSIMO CAPITAL
FUND, an Israeli equity fund with US$ 500 million under management. Among local
investments: TELRAD NETWORKS LTD., CROW TECHNOLOGIES LTD., M A P MOTORAD
AUTOMOTIVE PARTS LTD., DIP TECH LTD., KORNIT DIGITAL LTD., PHOENICIA FLAT GLASS
INDUSTRIES LTD., PRIORITY SOFTWARE LTD., ORIGENE SEEDS LTD., AFIMILK ACS LTD.,
BIOLOGICAL INDUSTRIES ISRAEL BEIT HAEMEK LTD., SOLCON INDUSTRIES LTD., FRITZ
COMPANIES ISRAEL T LTD., etc.
BANKERS
The First
International Bank of Israel Ltd., Avnei Chen Branch (No. 126), Ramat Gan,
account No. 187100.
Bank Leumi
Le’Israel Ltd., Main Branch (No. 901), Jerusalem, account No. 356000/11.
A check with the Central Banks' database did not reveal any negative
information regarding subject's a/m accounts.
CHARACTER
AND REPUTATION
Nothing
unfavorable learned.
Subject is
certified for ISO 9001:2000, CE, TUV, ASME,
This is a long
established company, among the leading in its field, and claims to be one of
the leading 3 companies in the world in the field of infection control, with
80% market share in Israel in the autoclave field (2011).
FORTISSIMO CAPITAL is a well-known local
equity fund. The Fund is focusing primarily on technology industries.
Fortissimo Capital 1 Fund manages US$ 80 million (raised in 2005). Fortissimo
Capital 2 Fund raised in 2008 some US$ 150 million. Following a successful exit
from SODASTREAM in 2011, it established its 3rd fund, raising US$
265 million. In April 2015 FORTISSIMO completed a raise of US$ 470 million for
its 4th fund (which subject is part of its portfolio).
In 2001, subject
leased (for ages) from the State a plot of 28,000 sq. meters in Beit Shemesh
Industrial Zone for its new premises and plant.
In 2004, subject established
a new subsidiary in Brazil, with an investment of US$ 200,000.
In 2006, it was
reported that subject will export sterilization devices to medical institutions
in the USA, after winning several tenders in value of US$ 8-10 million.
Israel is considered
one of the leading countries in the world in terms of investment in the Life
Science and Biotechnology industry.
According
to the Israel Export Institute (IEI), the volume of export of medical devices
and computerization (Healthcare IT) in 2016 marked 6% increase compared to
2015, summing up at US$ 1.725 billion. 40% of export was to the USA, 15% to
China.
The
above volume of the medical devices branch is defined based on its new
definition in the high-tech industry, which includes medical and surgery
equipment, but not orthopedic and consumable equipment (plastic and rubber),
and under the “old” definition, including these areas, export summed at US$
2.06 billion.
According to IEI estimation, there are some
1,300 companies in the Life Science sector in Israel, of which 70% are in the
medical devices and Healthcare IT fields,
24% in the Bio-Pharma fields, 7% in the medical computerization (Healthcare IT)
fields, and 7% in the medical services fields.
Export by the
medical devices and Healthcare IT branches.
SUMMARY
Good for trade
engagements.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 66.22 |
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1 |
INR 92.84 |
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Euro |
1 |
INR 81.27 |
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ILS |
1 |
INR 18.73 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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NIY |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
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Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.