Leon Recanati invests in Whitewater

Leon Recanati owns 72% of Gmul.

Gmul Investment Co. Ltd. (TASE: GMUL), controlled by Leon Recanati, has invested NIS 24 million in Whitewater Technology Group Ltd., the water technology investment company managed by chairman Ori Yogev and Hannah Gertler. The investment was made at a company value of NIS 108 million, before money, the same value given to it by consultancy firm Trigger Foresight Ltd. Gmul will own 18.2% of Whitewater. With this investment, Whitewater has raised NIS 60 million to date.

Leon Recanati owns 72% of Gmul.

Yogev said, "Gmul examined our business plan and portfolio and concluded that the valuation was reasonable. I have another offer at a similar valuation, but I really wanted Leon Recanati and Gmul because he's a very respected partner for the long haul and the road we'll travel."

Yogev added, "Gmul has an asset that we're very interested in: a stake in the Nahariya sewage treatment plant, which is a very modern facility. It's very important for us to be able to use this facility as beta site for our sewage treatment technologies. This part of the deal isn't final, however."

As part of the deal, Whitewater has undertaken to acquire 23% of TGA Western Galilee Infrastructures LP, in which Gmul owns 44.9%, for NIS 10 million. TGA owns the Nahariya sewage treatment plant.

Whitewater has invested in four companies: computerized irrigation systems manufacturer Galcon, drinking water pollution testing kits maker Checklight, Whitewater Well, and Whitewater Security.

Yogev noted, "The growing global water crisis has generated unprecedented demand for innovative Israeli water technologies. The present investment will speed up the company's penetration into the North American and European markets, and will enable us to exploit potential opportunities in the global water technology market."

Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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