Ginegar Plastic Products Ltd. (TASE:GNGR) signed a memorandum of understanding to acquire 60% stake in Italian Flextech S.r.l. from three shareholders of Flextech for €7 million on November 11, 2016. Ginegar Plastic Products signed an agreement to acquire 60% stake in Italian Flextech on May 30, 2017. The consideration paid by Ginegar Plastic is of €6.96 million, of which €5.76 million has been paid to the sellers and the remaining €1.2 million has been deposited in a trust account and will be used as guarantee of fulfillment of sellers’ obligations. The transaction has been financed through a long term loan of about $7.5 million (€6.71 million) from an Israeli bank. After completion, the sellers hold 40% of Flextech, while Ginegar Plastic holds 60% of it. The agreement also includes a call option, under which the Ginegar Plastic Products Ltd. may require from the Sellers to sell a part or the total of their remaining stake during a period of 120 business days, and a put option under which the Ginegar Plastic Products Ltd. may require from the Subsidiary to acquire a part or the total of their remaining stake during a period of 70 business days. The exercise price of the call option is of €11.60 million. For the year ended 2016, Flextech reported a revenue of €19.2 million, EBITDA totaled €3.3 million and after-tax net profit was €1.9 million. Ariel Nachman, Paolo Guarneri and Ottavio Sangiorgio of Studio Legale Associato in Association with Simmons & Simmons and Ottavio Martini, Beatrice Bonfadini and Edoardo Dalai of Lexjus acted as legal advisor to Ginegar Plastic Products Ltd. Cristina del Carretto di Ponti e Sessame, Riccardo Prete and Guido Tomatis of Tosetto Weigmann acted as legal advisor to the sellers. Ginegar Plastic Products Ltd. (TASE:GNGR) completed the acquisition of 60% stake in Italian Flextech S.r.l. from three shareholders of Flextech on May 30, 2017.