Tadiran Communications
Industry:
Communications
Investment Date:
November 1999
Investment Type:
Leveraged Buyout / Management Buyout
Company Description:
Tadiran possessed leading technology in tactical radios and military communications systems. As a subsidiary of a large industrial holding company, Tadiran had not received the focus necessary to maximize its value. Having previously owned a 20% stake in Koor, Shamrock was familiar with Tadiran's potential and talented management team. Shamrock partnered with management and a mezzanine fund to acquire controlling stake in Tadiran Communications for an aggregate investment of $155 million.
Transaction:
Shamrock invested $14.4 million of equity and nominated six board members, including the appointment of Mr. Gold as Chairman and Dr. Arie Ovadia as an Alternate Chairman. With Shamrock's support, Tadiran had an IPO on the Tel-Aviv stock exchange in September 2000.
Realization:
Through August 2004, Shamrock had generated $61 million in distributions through stock sales and dividends. In November 2004, Shamrock completed the sale of its remaining 25% stake in Tadiran for $108 million, representing an IRR of 75% and a 12x multiple.
