Afcon Holdings Acquires 51% Stake in Air Conditioning Firm for 8M NIS
Afcon Holdings has acquired a 51% stake in an air conditioning and refrigeration firm for 8 million NIS to expand its presence in the data center market, securing projects valued at 55 million NIS.
Afcon Holdings announced that its wholly owned subsidiary signed an agreement on Tuesday to acquire a 51% stake in a specialized air conditioning and refrigeration company for approximately 8 million NIS. The acquisition will be funded from the company's internal resources.
The deal aims to expand Afcon's capabilities in complex cooling and climate control systems, specifically targeting the rapidly growing data center market. Data centers require highly sophisticated technological and operational solutions, making advanced refrigeration a critical component of project execution.
Under the agreement, several ongoing and planned projects representing an estimated 55 million NIS in revenue over the next two years will be transferred to the acquired company. Furthermore, the current CEO of the partner firm will assume leadership of the acquired company following the transaction's completion.
Afcon CEO David Herali emphasized that the strategic move strengthens the group's portfolio and integrates essential technical expertise into its comprehensive service offerings. Despite the strategic expansion, Afcon's stock has faced downward pressure recently, dropping 9.37% over the past week and 16.98% over the last three months.
