Israeli private equity firm Fortissimo Capital controlling shareholder in Sugat (TASE: SUGT) is selling a 35% stake in the food manufacturing company for NIS 430 million. This is less than six months after leading Sugat’s IPO at a company valuation of NIS 1.2 billion, after money.

As part of the share distribution led by Value Base underwriters, Fortissimo, managed by CEO Yuval Cohen, is selling the largest share package to institutional entities, at a price of NIS 21 per share, a discount of 3% on Sugat share price today.

Following the sale of the shares, Fortissimo's holding will be reduced to 19% of Sugat but it will remain the biggest shareholder in the company.

For Fortissimo, this is an exit from a process it began in 2019, when it acquired Melach Haaretz (formerly Salt Industries), which has been operating in salt production and import since 1922, from Shari Arison, for NIS 160 million.

Later that year, Fortissimo, through Melach Haaretz, acquired Sugat, which has been importing and producing food products (sugar, grains, legumes, and flour) since the 1960s, from British trading company Mann for $60 million. In August 2021, Fortissimo sold 20% of Sugat's shares to Poalim Equity, the investment arm of Bank Hapoalim, at a company valuation of NIS 750 million. Now, Fortissimo is recording a sixfold return on the investment in Sugat (IRR of 57%).

Sugat's purchases of over NIS 350 million

In late 2025, Fortissimo led Sugat’s IPO on the TASE, in which the company raised NIS 360 million, at a company valuation of NIS 1.2 billion, after money, which was injected into the company. Fortissimo will now benefit from Sugat’s surge in value. According to market estimates, the move is also intended to increase the tradability of the stock, which has risen by about 8% since the IPO and is currently trading at a market cap of NIS 1.26 billion.

Sugat is one of the oldest and largest food companies in Israel. Under Fortissimo and the company's CEO Guy Propper (son of Dan Propper, former CEO and chairman of food giant Osem), the company has made a series of acquisitions, for an overall NIS 350 million, which has significantly expanded the portfolio of products it produces and markets, including sugar, rice, legumes, oils, salt, grains, baked goods and canned goods; this, through a variety of brands, including Etz HaZayit (oil), El-Erez (tahini), Pop (spices), El Nakhla (coffee) and Popstar (popcorn). At the start of 2026, shortly after the IPO, Sugat announced the acquisition of Filtuna for NIS 55 million.

Sugat ended 2025 with revenue of NIS 939.5 million, down slightly from 2024. Net profit was NIS 103 million, including a one-time capital gain of NIS 91 million, which resulted from a compromise agreement between the company and the Israel Land Administration, on the salt ponds it owned in Eilat. Without this and additional adjustments, the company's adjusted net profit rose 65% to NIS 66 million in 2025. Looking ahead, the company believes that in 2026 it will return to a growth path, with estimated revenue of NIS 977 million.

Published by Globes, Israel business news - en.globes.co.il - on May 4, 2026.

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