August 27, 2020

In Consideration for 40% of the plant’s shares in Ashkelon: Bosch will pay Electra Consumption 8 Million Euros

As revealed in "Calcalist", Electra Consumer Products and Bosch have joined forces to establish a joint venture to develop and manufacture heat pumps and air conditioning systems at the company's plant in Ashkelon; last week the Competition Authority approved the merger; the shares Bosch shall receive shall be inferior to the shares of Electra Consumer Products upon distribution of dividends – margins arising from the sale of heat pumps of the joint venture

The investment sum has been revealed: The Bosch Group will pay to Electra Consumer Products, owned by the Salkind family, 8 million euros in exchange for 40% of the shares of Electra's air conditioning plant in Ashkelon.

As revealed in "Calcalist", Electra Consumer Products and Bosch Thermotechnik GmbH have joined forces to establish a joint venture to develop and manufacture heat pumps and air conditioning systems at the company's plant in Ashkelon, and last week the Competition Authority approved the merger.

The shares that Bush will receive will be inferior to the shares of Electra Consumer Products at the time of dividend distribution, margins arising from the sale of heat pumps of the joint venture.

The global Bosch concern will acquire 40% of Electra's air conditioning plant in Ashkelon, a plant that is Electra Consumer Products’ main activity. Bosch Global is interested in entering into a partnership in the new plant that Electra is establishing, in order to expand the existing cooperation between the two companies, in the residential heating systems sector.

Electra Consumer Products, managed by Zvika Schwimmer, is one of the two leading air conditioner manufacturers in Israel. It is expected to move its air conditioning systems plant from Rishon Lezion to the Ashkelon industrial zone.

The plant will be spread over 32 dunams and will produce cooling and heating systems. Bosch is a German electrical products giant, and is the parent company of the manufacturer of household  electronics BSH, which also operates a branch in Israel.

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