Plasan looks to raise $150 million at a $500 million valuation amid defensetech surge
The Israeli military supplier is capitalizing on soaring demand for protection systems.
After several attempts to sell a controlling stake to investment funds, Plasan, a defense company from Kibbutz Sasa, is now considering a surprising strategic move. Calcalist has learned that the company, which specializes in armored vehicle protection, is in discussions with underwriting firms to explore options for raising $150 million in capital. The options under consideration include an initial public offering (IPO) or a private fundraising round involving institutional investors.
Plasan aims to raise the $150 million at a pre-money valuation of $350 million (NIS 1.2–1.3 billion), bringing its post-money valuation to $500 million.
Founded in 1985 as a manufacturer of rigid plastic products, Plasan shifted its focus to ballistic protection a few years later. Among its notable developments are the protective systems for the IDF's Storm and Humvee vehicles. Over the past decade, the company has concentrated on producing protective solutions for military vehicles, armored personnel carriers, ships, and aircraft. It has also begun manufacturing its own armored vehicles and selling them worldwide.
Plasan's customers span North America, Europe, Asia, Australia, and Africa. In addition to vehicle protection, the company produces ceramic body armor and ballistic vests using the same materials. It also develops carbon-fiber protective components, including those designed for the civilian automotive industry.
The company's peak came in the early 2000s, when it generated $1 billion in annual revenue, largely from U.S. military contracts during the wars in Afghanistan and Iraq. However, when those conflicts ended, the U.S. Department of Defense significantly reduced its budget for protective equipment, leading to a decline in Plasan’s sales. The company had not sufficiently diversified its product portfolio in advance, resulting in financial losses.
Between 2013 and 2014, Plasan suffered heavy losses and underwent a drastic restructuring, laying off 550 of its 1,000 employees. The COVID-19 pandemic in 2020 dealt another blow, nearly halting sales and pushing the company into crisis again. It began recovering in 2022 and has since returned to growth, now seeking to raise capital to expand through acquisitions.
Plasan currently employs 750 people, with 450 working at its main plant in Kibbutz Sasa. The factory, which primarily supplies products to the IDF, generates around $150 million in annual revenue. Over the past two years, driven by the Swords of Iron war, the company has experienced double-digit growth of 10%–12% annually. It expects this trend to continue, projecting revenue of $180–$200 million in Israel and $330 million across the group by the end of 2026.
Plasan is looking to capitalize on the recent boom in the defense industry, fueled by conflicts in Ukraine and the Middle East. The company operates four subsidiaries in the U.S., Greece, France, and Israel, with total group revenue reaching approximately $220 million in 2024. The EBITDA of the Sasa plant stands at $20 million, with a net profit of $13 million, while the group's overall EBITDA is around $26 million, with a net profit of $20 million.
Plasan’s largest subsidiary is based in Michigan, where it manufactures protective components for the JLTV armored vehicle under a five-year, $250 million contract with the U.S. military, set to run until 2030. The Michigan facility employs 180 people.
Another plant, located near Marseille, France, specializes in protective solutions for police vehicles and employs 80 people. In Greece, Plasan operates a subsidiary with 50 employees. The company also owns 50% of Plasan-RAM, which produces protective systems for small police and special operations vehicles and is based in the Dalton Industrial Zone.
Plasan’s new strategic plan prioritizes raising equity rather than taking on debt to fund acquisitions. The financial caution stems from past challenges, when the company struggled after a post-boom downturn. While the company’s management appears to favor an IPO, members of Kibbutz Sasa’s economic committee remain undecided. Some prefer to avoid the scrutiny that comes with a public listing, as an IPO would require the company to disclose its financial performance annually.
"The company is experiencing rapid growth, with an impressive order backlog, and is considering an inorganic growth strategy through mergers and acquisitions," said Kibbutz Business Manager Avihu Gilad. "In collaboration with the kibbutz, the company is evaluating various ways to strengthen its capital structure. All options will be reviewed and submitted for approval before a final decision is made."
Over the past year, the kibbutz has entertained acquisition offers from investment funds such as FIMI but has chosen to seek financial investors rather than sell a controlling stake. In late 2021, government-owned Rafael Advanced Defense Systems entered advanced negotiations to acquire 50% of Plasan for an initial valuation of NIS 500 million, with the potential to reach NIS 1 billion based on performance milestones. However, the deal was ultimately blocked by the Israeli Government Companies Authority.
During the war, Hezbollah targeted the Plasan factory in Kibbutz Sasa with two precision-guided missiles last June. While there were no casualties, the attack caused fires that damaged nearby orchards and agricultural fields. Despite the ongoing conflict, Plasan continued operations under emergency protocols, as it is classified as an essential defense supplier. Many of its employees remained on-site under special orders, while most of the kibbutz’s residents were evacuated to Kibbutz Ma’agan near the Sea of Galilee.
Over the years, Kibbutz Sasa has attempted to invest in other industries, such as dairy production in the Golan Heights, but these ventures have been unsuccessful.
Plasan is chaired by Maj. Gen. (Ret.) Udi Shani, a former director general of the Israeli Ministry of Defense. The company’s CEO is Moshe Elazar, the former CEO of Aeronautics.
