Lodan acquires control of A. Yoshua Engineers, which specializes in plumbing system design and is preparing to offer, for the first time in Israel, full management and planning services for building and infrastructure systems

• Lodan will acquire control (55%) of “Amnon Yoshua Engineers Consultants Ltd.” with an option to acquire full ownership
• Will fully consolidate the results of Yoshua Engineers in its reports and will enjoy a higher level of profitability than currently existing in Lodan’s business
• About a year ago, Lodan acquired Bar-Akiva, a company specializing in electrical design, including in projects in which Yoshua Engineers serves as the plumbing system designer
• The acquisition will strengthen Lodan’s business and competitive positioning and help expand the range of customers and increase the group’s planning and execution capabilities in “civil” projects such as Residential buildings, office buildings, hospitals, shopping centers, etc.

Lodan Engineering continues to expand its operations and completes a second acquisition, within about a year, of a company in the fields of structural systems and infrastructure: Lodan Engineering reports the signing of an agreement to acquire a controlling interest in Yoshua Engineers (55%). Lodan expects that this acquisition will advance the group towards a goal that includes a complete project management and planning solution that includes engineering design capabilities for water systems alongside engineering design capabilities for electrical systems in a wide variety of projects in the Israeli market. In addition, Lodan has received an option to acquire full ownership of Yoshua Engineers.

Yoshua Engineers is one of the largest and leading water systems, fire extinguishing systems, and energy and energy efficiency systems design companies in Israel. The company has over 60 years of experience in designing thousands of projects in a wide variety of solutions for civil infrastructure. The company specializes in engineering design for various water systems, including pumping, sewage, drainage and special supply and disposal systems, as well as heating and cooling systems, energy systems and medical gas systems. Yoshua Engineers has carried out and is carrying out several projects in which Bar-Akiva, which was acquired by Lodan about a year ago, serves as the electrical systems designer, and now under the management and leadership of the Lodan Group, the expectation is to increase the scope of activity of the two companies while creating operational synergy that will be expanded to additional disciplines in the future.

Yoshua Engineers is growing at nearly 10% per year, in an analysis of the company’s revenues over the past three years, and enjoys a higher EBITDA profitability rate than that of Lodan’s other activities. Yoshua Engineers has a high order backlog, and as of the date of the company’s acquisition, the existing backlog is almost double the company’s total revenues in 2022. Loden intends to finance the acquisition primarily through bank financing, with the remainder self-financing.

Omri Harel, Business Development Manager of the Lodan Group, said: “Lodan is consistently working to establish a significant and strategic arm of activity in the field of civil infrastructures, and the two important acquisitions we made of the companies Bar-Akiva and A. Yoshua Engineers greatly advance us in this strategic process. Lodan is pleased with the opportunity to acquire a successful and profitable company like Yoshua Engineers and is preparing to work together with the company’s work teams to advance the activity. In fact, this is part of the process of establishing an activity division under the MEP (Mechanical, Engineering, Piping) engineering sector that will establish our status as a company that offers a One Stop Shop for all planning services for civil, industrial and public infrastructures with a competitive advantage and an advantage of scale. We expect this area to become a growth engine for Lodan in the coming years. The group will continue to examine additional synergistic acquisitions such as air conditioning planning and systems coordination.”

Yair Yoshua, owner and CEO of Yoshua Engineers, said: “We are excited to collaborate with the Lodan Group and are confident that with Lodan’s offering of capabilities, services and connections, we will be able to continue to lead Yoshua Engineers to growth and success. Yoshua Engineers is committed to professionalism and a high level of service with the most stringent standards and regulations, and we will continue to do so. Combining forces will allow us to satisfy all of our customers’ needs and also enter into activity with new customers.”