Defense Ministry Signs Major Acquisition Deal with Ashot Ashkelon
The Israeli Defense Ministry has inked a significant deal with Ashot Ashkelon Industries, marking an acquisition of tank and APC components valued at approximately NIS 86 million (around $23 million). Amidst ongoing conflicts, the company has pending orders totaling an impressive $429.4 million.
What It Is About
Ashot Ashkelon Industries, renowned for its tank and APC component manufacturing, secured a substantial order from the Defense Ministry. The company’s order backlog, the largest in its history, is a testament to its critical role in national defense and technological innovation.
Why It Matters
This acquisition highlights Israel’s commitment to equipping its defense forces with top-quality, reliable components, ensuring heightened security and operational efficiency. Ashot’s successful track record and advanced technological capabilities bolster the IDF’s defense readiness during crucial times.
Driving the News
Since the Gaza conflict’s escalation, orders from the Defense Ministry have surged dramatically. The current deal encompasses production and supply commitments stretching over two years, further cementing Ashot Ashkelon’s position as a critical partner in Israel’s defense landscape.
What They’re Saying
“Since the outbreak of the war, the company continues its activities while providing support to its customers, particularly to the Defense Ministry, as well as to all of its customers in Israel and abroad in all fields,” stated Eliyahu Damari, CEO of Ashot Ashkelon Industries.
The Big Picture
Under the ownership of the First Israel Mezzanine Investors (FIMI) Opportunity Fund, Ashot Ashkelon has experienced outstanding growth. Acquired from Elbit in 2022 for over NIS 330 million, its market value now soars at approximately 830 million shekels. Additionally, the firm’s stock has surged by 35% since the beginning of the year, reflecting investor confidence and robust performance in the defense sector.
Further Context
Ashot Ashkelon’s expansion, including a strategic acquisition in the U.S. market, enhances its capability to supply international military and civil aviation sectors. The continued collaboration between Israel’s Defense Ministry and Ashot underscores a commitment to defense and technological superiority.
This story was first published on ynetnews.com.