Entire purchase of Greece's ELVO military vehicle company was conducted through Zoom, SK executives say
Senior executives from Israel's SK Group tell Israel Defense about the acquisition by SK and Plasan of the ELVO military vehicle plant in Greece, and the new ownership's plans for the future
Eyal Boguslavsky
| 05/07/2021
An ELVO all terrain vehicle. Photo: Hellenic Army
In recent months, there have been many reports about the joint purchase by two Israeli defense companies, SK Group and Plasan Sasa, of the ELVO military vehicle factory in Greece. Israel Defense recently spoke with a number of senior executives from the SK Group who agreed to tell us more details about the deal.
The cooperation between the companies began when Plasan contacted the SK Group regarding the possible partnership. The two companies submitted an offer to acquire ELVO's operations in the summer of 2020, and on February 14, 2021, the purchase was finalized. It happened three years after ELVO was declared bankrupt and placed under liquidation. Two tenders were issued for the purchase of the plant, but no offers were received.
It should be mentioned that according to reports in the Greek press, upon signing the acquisition agreement, the new owners paid an initial sum of three million euros. Economic sources in Greece said that the Israeli consortium committed to invest between 95 and 135 million euros in ELVO over the next five years. Under the new ownership, Plasan holds 47.6% of the company's shares, while SK Group through its holding company Naska Industries has the same share, and local businessman Arsitidis Anargirus Gallis holds 4.8%. SK was not willing to talk about the money involved, but confirmed that the group has a "50-50" agreement with Plasan, and their investments are also the same.
The group says that all the negotiations and the acquisition of operations took place during the Covid-19 pandemic, and that the purchase of the factory was done entirely through Zoom, without company representatives visiting the factory at all. The senior members of the group emphasized that the factory has been inactive for the last two years and there is a need to actually re-establish operations. Thus, the group's current focus is on investing in infrastructure and recruitment. SK has already recruited a Greek CEO, managers with a background in the local industry, and former employees of ELVO. But SK said that there are currently no workers in the factory, and no orders either.
There are those who question whether it is worthwhile to invest in a country that has struggled economically in recent years and relies on EU aid. The two Israeli companies strongly believe in the Greek economy and the many investments they claim the Greek government has made in local industry, renewal of infrastructure and bringing in and enriching local knowledge. Greece is a strategic country for Israel with a relatively developed defense industry, and the investments in the plant are intended to lead to inroads in the Greek market, and then in other European markets. Although the Greek government does not support this project, the group believes that the combination of SK's marketing and sales experience, especially in initiatives abroad, together with Plasan's ability and professional experience in the field of military vehicles, guarantee the success of the project.
As mentioned, senior executives at SK see the venture in Greece as a springboard. Initially, solutions will be offered to customers in Greece, but later they will be offered to other countries, especially in Europe, with the owners planning to expand into other defense industry fields as well. This will not only help Greece but also boost employment at Plasan's factory in Israel. The project managers hope that government customers will turn to them and give the Greek company the opportunity to recover. The group's executives emphasized that there is still a lot of work to be done, and orders are urgently needed.
The joint venture between the SK Group and Plasan will be unveiled in mid-July at the DEFEA military exhibition in Athens, where ELVO will be presented as a new brand that is connected to its roots. The vehicles on display will be ones made by Plasan.
Israel Defense also inquired about other activities of the SK Group. The senior members of the group declined to elaborate, except to say that the group is constantly seeking to expand in the defense industry, and wants to buy small companies. The group has set up a small fund to invest in non-pharmaceutical medical start-ups and has already invested in a number of them.
Senior executives from Israel's SK Group tell Israel Defense about the acquisition by SK and Plasan of the ELVO military vehicle plant in Greece, and the new ownership's plans for the future
An ELVO all terrain vehicle. Photo: Hellenic Army
In recent months, there have been many reports about the joint purchase by two Israeli defense companies, SK Group and Plasan Sasa, of the ELVO military vehicle factory in Greece. Israel Defense recently spoke with a number of senior executives from the SK Group who agreed to tell us more details about the deal.
The cooperation between the companies began when Plasan contacted the SK Group regarding the possible partnership. The two companies submitted an offer to acquire ELVO's operations in the summer of 2020, and on February 14, 2021, the purchase was finalized. It happened three years after ELVO was declared bankrupt and placed under liquidation. Two tenders were issued for the purchase of the plant, but no offers were received.
It should be mentioned that according to reports in the Greek press, upon signing the acquisition agreement, the new owners paid an initial sum of three million euros. Economic sources in Greece said that the Israeli consortium committed to invest between 95 and 135 million euros in ELVO over the next five years. Under the new ownership, Plasan holds 47.6% of the company's shares, while SK Group through its holding company Naska Industries has the same share, and local businessman Arsitidis Anargirus Gallis holds 4.8%. SK was not willing to talk about the money involved, but confirmed that the group has a "50-50" agreement with Plasan, and their investments are also the same.
The group says that all the negotiations and the acquisition of operations took place during the Covid-19 pandemic, and that the purchase of the factory was done entirely through Zoom, without company representatives visiting the factory at all. The senior members of the group emphasized that the factory has been inactive for the last two years and there is a need to actually re-establish operations. Thus, the group's current focus is on investing in infrastructure and recruitment. SK has already recruited a Greek CEO, managers with a background in the local industry, and former employees of ELVO. But SK said that there are currently no workers in the factory, and no orders either.
There are those who question whether it is worthwhile to invest in a country that has struggled economically in recent years and relies on EU aid. The two Israeli companies strongly believe in the Greek economy and the many investments they claim the Greek government has made in local industry, renewal of infrastructure and bringing in and enriching local knowledge. Greece is a strategic country for Israel with a relatively developed defense industry, and the investments in the plant are intended to lead to inroads in the Greek market, and then in other European markets. Although the Greek government does not support this project, the group believes that the combination of SK's marketing and sales experience, especially in initiatives abroad, together with Plasan's ability and professional experience in the field of military vehicles, guarantee the success of the project.
As mentioned, senior executives at SK see the venture in Greece as a springboard. Initially, solutions will be offered to customers in Greece, but later they will be offered to other countries, especially in Europe, with the owners planning to expand into other defense industry fields as well. This will not only help Greece but also boost employment at Plasan's factory in Israel. The project managers hope that government customers will turn to them and give the Greek company the opportunity to recover. The group's executives emphasized that there is still a lot of work to be done, and orders are urgently needed.
The joint venture between the SK Group and Plasan will be unveiled in mid-July at the DEFEA military exhibition in Athens, where ELVO will be presented as a new brand that is connected to its roots. The vehicles on display will be ones made by Plasan.
Israel Defense also inquired about other activities of the SK Group. The senior members of the group declined to elaborate, except to say that the group is constantly seeking to expand in the defense industry, and wants to buy small companies. The group has set up a small fund to invest in non-pharmaceutical medical start-ups and has already invested in a number of them.
