Israel’s business community is hailing the International Paper Co.’s announcement that it will buy 11 percent of Scitex, a high-technology Israeli photo-image printing company considered one of the leaders in the field.
The reported $209 million price has been described here as the biggest-ever investment in Israel by an American company. Scitex stock, which is traded on Wall Street, rose $3 a share after the announcement Friday.
The deal gives Scitex valuable international connections and cash for expansion projects.
The company, one of Israel’s business success stories, produces state-of-the-art transmission and printing systems which compare favorably with the best produced in the United States, Europe and Japan.
The major non-public shareholders in Scitex are the IDB Group, headed by Discount Investments and Clal. The deal with International Paper was signed by IDB Chairman Rafael Recanati.
International Paper is one of the largest U.S. companies, with an annual turnover of $16 billion. Its assets amount to about $6 billion, including forests all over the world.
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