The Pines family is on track for a major exit in the automotive parts sector. Calcalist has learned that the private equity firm Legacy is in advanced talks to acquire a 70% controlling stake in M-Pines for approximately $143 million, valuing the company at $203 million overall.
This comes eight years after Apax Partners’ Israeli arm, led by Zehavit Cohen, nearly bought 75% of the company at a valuation of up to $73 million. That deal collapsed—but the Pines family is now set to exit at nearly 2.8 times the earlier valuation. To finalize the current deal, Legacy will need to secure additional funding, as it has raised only about $54 million so far, most of which has already been deployed.
M-Pines is a family-owned business established by Moti Pines, who currently owns 50% of the company. His relative, David Pines, holds the other half. A third family member, Ofer Pines, previously owned 20% but sold his stake five years ago to focus on real estate ventures.
According to the company’s website, M-Pines specializes in importing, marketing and distributing spare parts for nearly all types of private and commercial vehicles in Israel. It operates a computerized logistics center in Ramla covering roughly 54,000 square feet, housing tens of thousands of parts. Its client base includes approximately 400 garages nationwide, and it also serves individual customers. The company offers professional guidance on parts selection and leverages a high-efficiency logistics system to ensure quick delivery.
Founded in 1986, M-Pines started by importing parts for a small number of vehicle models and has grown into a leading player in the field. The company is estimated to generate annual revenue of around $135 million, with a double-digit EBITDA margin.
If the deal closes, Legacy could soon face regulatory challenges related to a proposed reform in the auto parts market. The reform aims to reduce the cost of car repairs and, in turn, lower insurance premiums. Although it was recently blocked by Transport Minister Miri Regev, it could resurface on the legislative agenda.
The reform targets a significant pricing distortion in the spare parts sector. Garages often buy replacement parts at 45–60% below the official manufacturer list price, and 60–85% below the listed price of aftermarket parts. However, a Transportation Ministry regulation from 1980 requires damage assessors to base repair cost estimates on the full list price rather than the garage’s actual purchase price.
This leads to inflated insurance claims, with Israel’s Competition Authority estimating that consumers pay hundreds of millions of shekels more annually—costs that benefit garages, suppliers, and importers. The proposed reform would allow assessors to use real market prices, plus a service markup for garages. While this would be a win for consumers, it could significantly cut into garage margins that rely on the current pricing spread. For now, the reform remains frozen.
Legacy was founded in 2021 with a focus on investing in mid-sized, family-owned Israeli companies. Its founders are Eylon Penchas (a former partner at Viola, which is also a core investor in Legacy), Nadav Harari (former CEO of Chemovil under the Emilia Development Group), and Ben Orion (formerly of consulting firm Prometheus). To date, the fund has raised around $54 million and made four investments.
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A fifth planned investment—a bid to acquire 20% of electronics manufacturer Nistec at a $243 million valuation—fell apart last year after media exposure. Nistec, owned by Yitzhak Nissan, controls the publicly traded circuit board manufacturer Eltek.
Legacy’s first two acquisitions were in the logistics company Mentfield and Paragon, a fire and smoke prevention firm under the Barnea Group. It acquired 50% of Mentfield for $16 million and 60% of Paragon for $9.5 million. However, the Mentfield deal proved rocky. A conflict with founder Omer Yitzhaki has led the fund to sell back its shares to him at roughly the original purchase price. That deal is backed by businessman Moti Ben-Moshe, who may gain control of the company through the financing arrangement.
Legacy’s third investment was a 55% stake in L.K. Tools—purchased for $14.8 million from the Loel and Katz families. Its fourth acquisition came in July, when it bought agricultural supply firm Hamashbir LaHaklai from Sky Fund for $21.6 million.