The months of uncertainty for Landa Digital Printing have come to an end, with the debt-ridden company being acquired by private equity firm FIMI for US$80 million, according to Israeli news outlet CTech.
As part of the debt restructuring plan, which was approved by the Israeli Central District Court, FIMI will take full ownership of the company, which was founded by entrepreneur Benny Landa, and invest US$80 million into its operations.
Judge Hana Kitsis, who presided over the case, stated that “the arrangement would preserve the company’s operations and protect the employment of most of its workforce”.
In terms of the liquidation route, Judge Kitsis said it “would likely have produced minimal returns, given that the company’s customer base is primarily located outside Israel and its domestic assets consist mainly of machinery”.
This latest development comes after Landa secured the lifeline it was seeking from the Israeli courts in July, giving it a stay of proceedings until the end of August to find a buyer. The company reported a cumulative debt of around US$460 million.
According to FIMI partner Gillon Beck, the firm anticipates a three-year timeline for its recovery plan – in which is plans to restructure operations, reduce dependence on external suppliers, and stabilise the business.
Landa develops and manufactures advanced digital printing machines for the commercial printing, packaging, and publishing sectors.
At the time of writing, Benny Landa’s future role in the business remains unclear.