Private equity firm CVC has acquired a 40 percent stake in Fibrotex, an Israeli defense manufacturer specializing in camouflage technology, in a deal valued at approximately €250 million. The transaction, completed through CVC’s mid-market Catalyst fund, involved purchasing shares from the founding Blum family, with Adi Blum, a former Israel Defense Forces member, remaining invested in the company.

The acquisition was led by CVC’s German team, which had been in discussions with Adi Blum over several years prior to reaching an agreement. However, the private equity group chose not to issue a public announcement about the investment, opting instead to notify only its fund investors. Sources familiar with the matter indicated that the decision was driven by sensitivities surrounding investments in the Israeli defense sector amid current geopolitical tensions.

In communications with its investors, CVC notably refrained from explicitly identifying Fibrotex as an Israeli company. While the firm is headquartered in Petah Tikva, Israel, the private equity group characterized it instead as a global business with operations in countries including the United States, Japan, and Australia. Following external inquiries, CVC acknowledged that Fibrotex maintains principal locations in Israel and the United States and serves an international customer base spanning over 20 countries.

CVC stated that the Catalyst fund is committed to supporting Fibrotex’s ongoing international growth and innovation, particularly in the context of global defense modernization and increasing security demands.

The deal occurs amid heightened political sensitivities. Recent diplomatic developments saw the United Kingdom, France, and Canada introduce import restrictions on products and services linked to Israeli settlements in the occupied West Bank. This evolving environment has added layers of complexity to financial engagements involving Israeli defense companies.

Fibrotex did not respond to requests for comment regarding the transaction.