Akerstein Exits US Market After 38 Years with 90 Million Shekel Sale
Israeli building materials firm Akerstein is exiting the US market after 38 years, signing a binding deal to sell its American operations for 90 million shekels to curb ongoing losses.
Akerstein is exiting its US operations after 38 years, following its entry into the American market in 1988. The company has signed a binding term sheet to sell its US business for approximately 90 million shekels (roughly 30 million dollars) to an American firm specializing in interlocking pavers and environmental development solutions. The identity of the buyer has not been disclosed. This strategic shift marks one of the first major moves by Zvika Akerstein, who was appointed CEO on August 27, succeeding Amit Lang, who served in the role for about six months. The transaction aims to refocus the company on its core operations in Israel while shedding unprofitable US activities that have weighed on its financial performance.
Financial Performance and US Assets
Akerstein operates three manufacturing plants in the United States, located in California and Arizona, through its subsidiaries Aker Stone in the Los Angeles area and Aker Stone Arizona. The company produces and markets interlocking pavers, paving and cladding tiles, garden and curb stones, stairs, and complementary products. In 2024, it acquired a facility in Eloy, Arizona, for 2.4 million dollars, while its other two sites in Chandler, Arizona, and Corona, California, were established directly by the firm. Revenues from the US operations totaled 7.13 million dollars in the first half of 2026, compared to 6.67 million dollars in the same period of 2025, representing a 6.9 percent increase in dollar terms. However, due to currency fluctuations, revenue in shekel terms decreased by 2.35 million shekels, or 9.8 percent.
Despite rising dollar-denominated revenues, our operating loss in the US deepened to 9.3 million dollars, compared to 8.8 million dollars in the comparable period, with a negative EBITDA of 6.3 million dollars.
Market Challenges and Ownership Structure
The American operations have faced severe headwinds, including high transportation costs, fierce competition, and fluctuations in US housing starts and project execution. Akerstein's capacity utilization rate in the US dropped from 28 percent in 2024 to just 21 percent in 2025. Akerstein is currently traded at a market capitalization of 1.7 billion shekels, after its share price fell by 35.5 percent over the past three months and by 32 percent since the beginning of the year. The Akerstein family holds approximately 68 percent of the company's shares: father Giora holds 14 percent, son Zvika holds 13.5 percent, and daughters Karin Cleare and Maya Lipin hold 13.4 percent each, with matriarch Stephanie also among the family shareholders.
