Israel's largest oil refiner - Oil Refineries Ltd. (ORL)'s wholly owned foreign subsidiary Carmel Olefins Ltd. has agreed to acquire 49% of the outstanding share capital of Domo Polypropylene BV. Carmel Olefins is a private company in which ORL holds 50% stake. Completion of the transaction is subject to the approval of the relevant anti-trust authorities as well as the receipt of an environmental report with respect to the condition of the ground on which the Domo plant is situated.
Domo, incorporated in the Netherlands, is active in the manufacture and marketing of Polypropylene. Domo owns a 180,000 tpa Polypropylene manufacturing facility, located in the Netherlands. Domo's revenues for full year 2006 and for the nine month period ending September 30, 2007, totaled approximately €176 million and €154 million respectively. Domo's net income for the said periods totaled approximately €1 million and €6.3 million respectively.
This is Carmel's first acquisition of a foreign manufacturing plant in line with its strategy to identify opportunities for the acquisition of foreign companies active in its business areas. This acquisition is in line with ORL's strategy to expand its businesses, including in petrochemicals, while identifying, among others, expansion opportunities abroad.