CVC Acquires 40% Stake in Defense Tech Firm Fibrotex for $350M

Investment fund CVC Capital Partners is acquiring a 40% stake in Fibrotex, based in Petah Tikva, for approximately $350 million. According to market sources, the transaction is being executed through CVC's Catalyst 3 fund. The Bloom family, which currently holds 100% of the company's shares, will remain the controlling shareholder with a 60% stake.

Transaction Details and Advisors

The negotiations, led by investment bank Jefferies under the direction of Nati Ginor, lasted for several months after talks began in April. Fibrotex specializes in the development, manufacturing, and integration of advanced camouflage technologies for armies, special forces, and police units. Its systems provide multi-spectral concealment, hiding personnel, facilities, and vehicles from the human eye, thermal cameras, night-vision devices, and radars.

Financial Performance and Future Outlook

Market estimates place Fibrotex's revenues for 2025 at between $130 million and $150 million, with operating cash flow (EBITDA) reaching tens of millions of dollars. Results for 2026 are projected to significantly surpass those of the previous year. The vast majority of the company's sales are directed to the United States Armed Forces across its various divisions.

"CVC agreed to acquire a minority stake, but the fund secured an option to purchase the remainder of the family's shares should they decide to sell within the next four years."

Four strategic entities and four major investment funds participated in the tender led by Jefferies. While all prospective buyers sought a controlling stake, CEO Adi Bloom and the Bloom family insisted on retaining majority control following a series of major contract wins over the past year. Meitar law firm advised on the transaction, while Gornitzky and Freshfields Germany represented CVC.