Israeli engineered quartz countertop company Caesarstone Ltd. (Nasdaq: CSTE) today announced that it has acquired Omicron Granite and Tile, a stone supplier operating in 17 locations in Florida, Ohio, Louisiana, Michigan and Alabama. Omicron expands Caesarstone’s distribution network in the US.
This is Caesarstone's second acquisition in the past six months having acquired Italian ceramics company Lioli for $12 million in August. At the end of the third quarter Caesarstone had $146 million in cash.
Under the terms of the deal, Caesarstone acquired Omicron for an enterprise value of $27 million, including $6 million of net debt. Omicron is profitable and would have contributed over $50 million in revenue to the company’s 2020 results.
Caesarstone CEO Yuval Dagim said, "We view accretive M&A as a valuable resource to accelerate our global growth. Omicron represents our second acquisition in the last several months, and is directly aligned with our strategic pillar of global footprint expansion, to provide better service to our customers while improving our logistical efficiency. As we integrate Omicron, we expect to further leverage Caesarstone’s existing sales force and world renowned brand to enhance our customer reach and capture additional market share in several attractive US regions."
Caesarstone is controlled by the Tene private equity fund and Kibbutz Sdot Yam, which together have a 40.8% stake. Due to the coronavirus revenue was down 15.2% in the first nine months of 2020 to $350 million and non-GAAP net profit was down 30.4% to $15.3 million. The company's share price was up 2.45% yesterday on Nasdaq to $12.94, giving a market cap of $445.6 million.
Published by Globes, Israel business news - en.globes.co.il - on January 6, 2021
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