A planned Tel Aviv Stock Exchange listing by Israeli armor maker Plasan that was first reported in March has been put on hold amid strong investor demand for defense sector assets, industry executives said.
Plasan and its owner, Kibbutz Sasa, had been preparing to go public at a valuation of about 1.25 billion shekels. Instead, the company is advancing an alternative plan to merge part of its operations with CarmChrome of Karmiel. The merged business is expected to seek a stock market listing in 2026 at a valuation of around 1 billion shekels, according to people familiar with the plans.
Plasan specializes in protective solutions for military and civilian vehicles. Its two main divisions include armor systems for combat platforms such as the Merkava tank and Eitan armored fighting vehicle, as well as protective solutions for naval and aerial platforms and the development of composite materials for both military and civilian automotive industries. Plasan plans to merge its composite materials unit with CarmChrome, for which it is already a major customer.
Executives at Plasan said the combined company would benefit from greater scale and financial strength, enabling it to pursue strategic acquisitions and compete for larger contracts domestically and abroad.
CarmChrome, established in 1973, manufactures metal parts and components for defense contractors, rail companies, solar and medical device manufacturers, and high‑tech firms. The company operates three factories in Karmiel covering about 25,000 square meters, including a wastewater treatment facility. Its operations include metal machining, coatings and paint facilities capable of handling parts from miniature components to pieces weighing up to 2.5 tons. CarmChrome employs about 300 workers, serves roughly 50 customers worldwide and reports annual revenues of about $70 million.
Defense clients include Israel Aerospace Industries, Rafael Advanced Defense Systems, Elbit Systems, Yasker, Bombardier, Alstom and Brenner.
In May, Manor Evergreen Capital, a real estate investment arm of Bank Leumi led by Avi Ortal, Yuval Zeira and Lilach Katz, acquired a 50% stake in CarmChrome from the founding Lavi family for 100 million shekels. Under the emerging merger plan, Kibbutz Sasa is expected to hold 50%–60% of the combined company, with the remainder held by CarmChrome shareholders and Manor Evergreen.
The merged company’s annual EBITDA is projected at approximately $20 million (about 65 million shekels), and positive sentiment in the defense sector is seen as supportive of its prospective stock listing.
Plasan, founded in 1985, originally produced rigid plastic goods before shifting into ballistic armor. It began supplying bomb disposal gear for the Israel Defense Forces in 1989, and later developed advanced vehicle protection systems, now its core business. Its latest product, launched about a year ago, is a protection system for vehicles against unmanned aerial threats.
Plasan employs about 700 people, mostly at Kibbutz Sasa, and is led by Moshe Eleazar. Annual revenues are around $200 million, following recovery from a downturn after the end of the Afghanistan war and the COVID‑19 pandemic. Recent conflicts, including the Ukraine war and the current fighting in Gaza and Lebanon, helped boost the company’s revenues over the past two years. During last year’s war, one of Plasan’s factories was struck by two Hezbollah rockets.
Manor Evergreen Capital aims to replicate the success it achieved with another defense‑sector investment. The firm bought 40% of that company in January 2024 at a valuation of 180 million shekels, took it public in May at a 575 million shekel pre‑money valuation (700 million shekels post‑money), and its share price has since surged, lifting the company’s market value to about 2 billion shekels.