CVC invests in FIBROTEX

CVC agreed to acquire a 40% stake in Fibrotex, the Israeli camouflage technology company, from its existing shareholders, through its CVC Catalyst III fund. The founding Blum family, which had owned the company outright, kept control with the remaining 60%, and CVC obtained an option to increase its holding over the following five years, subject to the company meeting specific targets. Completion was expected in the first half of 2027, subject to regulatory approvals. Negotiations ran for several months after the family began exploring a partner in April, when it hired Jefferies to sell a stake. The price finally agreed implied a valuation below the level discussed at the outset. Adi Blum, a veteran of the Israel Defense Forces and president of the company, kept a stake. At the time of the deal, Fibrotex operated in around 20 countries and had supplied more than 250,000 systems worldwide, with the United States military as its largest customer, after winning a sole-source US Army contract in 2019. Market estimates put its 2025 revenue at $140m, with significantly higher revenue expected in 2026. Jefferies advised the Blum family and Rothschild advised CVC.