Israel Defense has learned that the sale of Greek military vehicle company ELVO to a joint venture between the Israeli companies SK Group and Plasan together with a local businessman has been completed. The Greek website Capital.gr reported that on Friday, November 20, shortly before the expiration date, the new company ELVO (2020) was established by the new owners. Upon signing the transfer of ownership agreement, the new owners will pay an initial sum of 3 million euros, according to the report. Financial sources in Greece said that the Israeli consortium has committed to invest between 95 and 135 million euros in the company over the next 5 years.
According to the new outline, Capital.gr claims, Plasan holds 47.6% of the company's shares, SK Group (through its holding company Naska Industries) has the same share and local businessman Arsitidis Anargyros Glynis has 4.8%. The company will be headed by Orly Katsav-Peleg and the members of the board will be Haim Schwartz, Dan Ziv and Azriel Bimerstein. The Greek government reserves the right to purchase 21% of the company for a fee after 3 years.
Government officials were quoted in the summer as saying that in addition to the purchase price of ELVO assets, the most important thing is the business plan and investments that buyers intend to implement in Greece through ELVO. The properties in which the consortium is interested are three plots of land in an area of more than 270,000 square meters in the Sindos industrial area in the Thessaloniki area, buildings and facilities in Sindos, intellectual and industrial property and rights such as the unique trademark and the "ELVO" logo.
Economic sites in Greece have reported in recent days that the company will participate - for the first time under the ownership of Israeli companies - in a tender of the Greek army worth 550 million euros to replace the Steyr trucks and Jeep Mercedes-Benz tactical vehicles currently in military service.
ELVO was founded in 1972 under the name STAGIER HELLAS. In 1986, after the transfer of part of the Austrian ownership to the Greek state, it was renamed HELLENIC VEHICLE INDUSTRY (ELVO SA). In August 2000, following an international tender, 43% of its shares and management were transferred to the holding company Mytilineos, which left the company in 2010 and then the Greek state took over its 85.5% share. In February 2014, the Thessaloniki Court of Appeals granted a request by the Greek government to grant the company the status of a company under liquidation. In the same year, the state gave the company a sum of 13 million euros to complete the execution of project contracts with the army and to complete the process of liquidation. In April 2015, the Greek government decided to halt the process of liquidating the company and put it up for sale to a private buyer. In March 2020, the Greek government issued a tender, led by Ernst and Young, for the sale of the company, and the Greek minister of economy said that 7 groups of investors had announced their interest. The Greek press reported at the time that among those interested were the Israeli company Plasan, the Greek Kouimtzis Group, the Italian company Trainose, Germany's KMW, the South African Paramount Group and the Greek companies Petropoulos and Intracom Defense.
SK Group and Plasan declined to comment.
A Steyr truck. Photo: https://commons.wikimedia.org/wiki/File:Steyr_12M18_truck_of_the_Austria...