B. Gaon Holdings Ltd. (TASE: GAON) subsidiary Gaon Agro Industries Ltd. (TASE: GAT) has acquired half of Aqua Control Systems for Water Flow Infrastructures Ltd. for NIS 26 million from its chairman David Shani. The payment could increase by up to an additional NIS 10 million depending on Aqua's financial results in 2009-10. Shani will continue at his post, subject to approval of Gaon Agro's board.
As part of the deal, Motech Water Management Ltd., also owned by Shani, will be merged into Aqua Control Systems as a wholly-owned subsidiary.
Aqua Control Systems was founded in 1988. It distributes and installs water control and irrigation systems for farming and parks. The company has been a strategic partner of Motorola Inc. (NYSE: MOT) for 18 years, selling its IRRInet irrigation control and communication system under a non-exclusive license.
Gaon Agro states that Aqua Control Systems posted a net profit of NIS 1.5 million on NIS 42.9 million revenue in 2007, compared with a net profit of NIS 1.4 million on NIS 40.6 million revenue in 2006.
Motech Water Management was founded in 2006. It represents Motorola in 14 countries, including Australia, France, Italy, and Spain. Gaon Agro disclosed no financial details about this company.
Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2008
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