Koor Industries
Industry:
Industrial Conglomerate
Investment Date:
June 1995
Investment Type:
Leveraged Buyout
Company Description:
Koor was a leading conglomerate with interests in the telecommunications, agrochemicals, building materials, energy and food businesses. Due to Koor's conglomerate structure, its businesses collectively traded at a discount to intrinsic value. In addition, due to Koor's history of ownership by Israels' labor union, Shamrock believed there were significant opportunities to drive performance, improve capital allocation and focus on return on invested capital.
Transaction:
Shamrock invested $141 million and worked together with Koor’s senior management to adopt a strategic plan predicated on the following: asset rationalization to reduce the number of owned businesses, improving return on invested capital and increasing liquidity for shareholders by listing on the New York Stock Exchange.
Realization:
The investment was sold in November 1997, after a 28-month holding period and produced an IRR of 30.3% and a 1.9x multiple.
