Elbit Systems has taken a majority stake in Israel’s Elisra Group after acquiring Koor Industries’ 70% holding for $70 million in cash.
Completed on 6 July, the transaction will bolster Elbit’s position as Israel’s leading privately owned defence company and places it in partnership with state-owned Israel Aircraft Industries (IAI), which holds the remaining 30% of Elisra shares. The acquired group comprises Elisra Electronic Systems, Tadiran Electronic Systems and Tadiran Spectralink.
Elbit president Joseph Ackerman says the deal is a significant step in the consolidation of the Israeli defence industry and will “enhance our capabilities in the international market”. The company will also spend $83 million to increase its stake in Tadiran Communications to 38% by purchasing an 18.2% holding from Koor.
- Israel Military Industries’ Givon propulsion and rocket division will be merged with the missile divisions of either IAI or Rafael by mid-2006, says company chairman Ovadia Eli.
ARIE EGOZI / TEL AVIV
Source: Flight International
