Kanfit Ltd. announced that Israeli defense contractor Rafael Advanced Defense Systems has acquired a 50 percent stake in its company. Kanfit is a private company owned by Shai and Shula Fine, who will keep a 50 percent stake in the company following the deal, which is valued at tens of millions of shekels.

Founded in 1986, Kanfit manufactures primary and detailed parts, sub-assemblies, and fit-to-fly assemblies made from composites and sheet & block metals, and the integration of both. Rafael focuses mainly on advanced systems such as precision-guided missiles, air and missile defense systems, and naval defense systems.

"The partnership will combine the excellence and quality of our two companies in the field of composite materials and will help to develop and create new technological capabilities", said Kanfit Founder and General Manager Shai Fine. "The acquisition and the synergy between Rafael and Kanfit will serve as a springboard to catapult Kanfit to a new level both domestically and internationally.

According to Ayelet Shapira, Senior Vice President of Rafael, who spearheaded the merger, "The move is part of Rafael's overall readiness to provide advanced production capabilities in composite materials and will enable us to expand production capacity. We have identified Kanfit as an important center of knowledge for composite manufacturing, with unique capabilities in the Israeli market, which will enhance Rafael's competitive position in the local and global markets."

Kanfit recently purchased a new 11,000 sq. meter (118,000 sq. ft.) manufacturing plant, approximately three times the size of its current facility. The company move is expected to be completed by the end of 2019.