Elbit Systems divests Ashot Ashkelon holding

Israel's Elbit Systems announced on 21 October that it had signed an agreement to sell its 84.98% stake in component manufacturer Ashot Ashkelon to private equity fund FIMI Opportunity Funds.

The deal is valued at USD88 million and will involve Elbit Systems also selling its capital notes in the firm to FIMI. An expected timeline for the sale was not disclosed, however, it remains subject to regulatory approvals and other closing terms.

The remaining 15.02% of the company stake will be a free-float on the Tel Aviv Stock Exchange.

Ashot Ashkelon manufactures a variety of subcomponents and parts for the civil and military aerospace sector, including engine shafts and rotating parts, gearboxes, and transmissions. The company also manufactures heavy-duty transmissions, final drives, and suspension systems for commercial and military land systems.

Ashot Ashkelon reported 2020 revenues of ILS307.4 million (USD95.6 million) and a gross profit of ILS29.8 million, according to the Tel Aviv Stock Exchange.