According to a report released by the IVC Research Center, Israeli private equity deals had attracted in the first half of 2013 no more than US$940 million. The amount was raised courtesy of seventeen private equity deals. The figures represents a decline of 48% from the 26 private equity deals that raised US$1.8 billion in the first half of 2012. The biggest transaction by far was the acquisition of tire manufacturer Alliance Tire Company by KKR for US$500 million.
KKR is a well-known American private equity fund. According to the report, the average value per deal in the first half of this year was US$55 million. The avergae value per deal in the same time period of last year was US$69 million.
"The KKR/Alliance Tire transaction demonstrates once again the interest international private equity firms have in the larger transactions in Israel. This transaction also shows that foreign investor interest in Israel is not limited to pure technology companies. As legislation to reduce concentration in the Israeli economy progresses, I expect to see an increase in private equity activity in traditional sectors of the economy in addition to continuing strong interest in Israeli technology and innovation," GKH Mergers and Acquisition division head Rick Mann said.
KKR's US$500 million acquisition of Alliance Tire grabbed 69% of the total deal value last quarter.
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