Markstone bought Zeraim Gedera in 2005 for $48 million and undertook
to pay the company's shareholders an additional $4 million, subject
to its performance. The company has paid $9 million in dividends over
the subsequent 18 months, which means that Markstone is making a
return of more than 100% on the investment. Markstone will record a
profit of $50-55 million on its investment.
Zeraim Gedera was founded by seven families in the 1950s. The
company's president and CEO is Ohad Zuckerman. It currently has over
200 employees and operates both in Israel and internationally. The
company posted a turnover of $25 million in 2005, has reportedly
passed the $30 million level, and expects $40 million this year,
giving a growth rate of 20-25% a year.
Zeraim Gedera will reportedly continue as an independent company,
even as it will now benefit from Syngenta's business infrastructure
in sales, marketing and so forth.
Sources reveal Ęthat Swiss agrochemicals giant Syngenta International
AG (NYSE:SVT; SWX;SYNN) is acquiring seed development company Zeraim
Gedera Ltd. from Markstone Capital Partners Group LLC at a valuation
of $90-100 million. Syngenta has a market cap of $20 billion.