Strengthening infrastructure: Manor acquires a stake in Argil Group at a valuation of 300 million shekels

The investment fund Manor Evergreen is acquiring 30% of the shares of Argil Group, which operates in the infrastructure and construction sector. Calcalist has learned that Argil's valuation in the deal will stand at 300 million shekels, and that Manor will receive an option to increase its holding to 40%.

Argil produces and markets aggregates for the construction industry, and supplies cement, mortar, asphalt mixtures, and quarry materials. The group was founded in 1993 and operates along the entire value chain of the raw materials sector for infrastructure — from mining and quarrying, through crushing, screening, and transportation, to the production and marketing of complementary products for the construction and infrastructure sectors. The company is characterized by vertical integration, which allows it to provide end-to-end solutions to its customers, including the largest construction companies in Israel. The company, which operates from Shoham, has been managed since its inception by its founders Gil Horn and Arik Avraham.

Its activity is divided into five main areas:

1. Mining, quarrying, and aggregate production — extracting raw materials for the infrastructure and construction sectors, alongside holdings in strategic quarries.

2. Transportation and logistics, using a dedicated system that provides transport solutions for raw materials and customers across the country.

3. Follow-on construction products, which includes owning and operating plants for the production and marketing of concrete products, mortar, ready-made construction mixtures, and industrial minerals.

4. Infrastructure contracting, which includes performing earthworks, development, and infrastructure for public bodies, local authorities, and clients from the business sector.

5. Solutions for the construction industry, which includes the development and production of advanced concrete products and complementary technologies for the industry.

Despite the stagnation in the construction and residential sector, Manor Evergreen estimates that the expected investments in the infrastructure sector in Israel, mainly in the development of transport systems and energy facilities, alongside significant entry barriers and an expected shortage of raw materials resulting, among other things, from regulatory and planning restrictions on opening new quarries, will support the continued growth of Argil.

Manor Evergreen was founded in 2023 and is managed by Avi Ortal, Yuval Zeira, and Lilach Katz, all three of whom are former employees of Leumi Partners, the real investment arm of Bank Leumi. Last month, Manor acquired 24.6% of the shares of the control systems company Ord, with an investment of 50 million shekels made into the company. The acquisition was carried out at a price of 164.5 agorot per share, about 10% below the share price on the stock exchange, after it had jumped by about 35% in less than a month. Today, Ord's share is traded at a price of about 193 agorot, so on paper, this is a profit of about 17%.

Last June, Manor acquired 50% of the nursing services company Nathan for 200 million shekels, at a valuation of 400 million shekels. Since its inception, the fund has raised 1.5 billion shekels from a series of institutional investors, including Leumi Partners, Menora, and Migdal, as well as from private investors. To date, Manor has completed an exit in the defense company RP Optical, and is now working to promote the IPOs of Synergy and Plasan, which was merged with Carmochrom and is under its control.