Israel's Arad nears deal to acquire majority stake in Mexican water firm
Israel's Arad Group is reportedly in advanced talks to acquire a majority stake in a Mexican water company to expand its presence in the Latin American region. Arad develops water meters used to reduce water loss.
Arad chairman Hugo Chaufan told Bloomberg that his company is nearing an agreement to buy more than 50% stake in a water-measuring company for its first purchase in Mexico. Chaufan declined to name the company because the talks are continuing and are private.
The report, quoting Chaufan, said that the agreement is valued at about $10 million. The deal is expected to close as early as the first quarter of 2014.
Arad is focusing on installing electronic water meters to raise consumer efficiencies. It hopes to take on American rivals such as Itron Inc. and Badger Meter Inc., Reuters said. Aside from emerging markets, Arad also plans to boost its presence in France and Germany. Acquisitions in the said western European countries may reach as much as $90 million, the report said.