Water meter maker Arad Ltd. (TASE:ARD), controlled by Kibbutz Dalia and Kibbutz Ramot Menashe, today announced that on January 15, it won a tender of UK water and sewage company Southern Water to supply water meters with Automated Meter-Reading (AMR) systems. The tender is worth ₤36 million (NIS 215 million).
This is Arad's first tender win in the UK, and the company's largest ever win. Arad's share rose 14.4% in morning trading today to NIS 18.80, giving a market cap of over NIS 450 million.
Under the tender terms, Arad will supply Southern Water ₤7.1 million worth of AMR water meters per year over five years. Southern Water has an option to buy more AMR water meters on the same terms over an additional five years.
Southern Water is one of Britain's largest water and sewage utilities, and the first UK utility to install water meters with AMR technology at its customers.
The AMR systems are made by Arad subsidiary Arad Technologies Ltd.
In December 2009, Arad completed the acquisition of 51% of Spanish water meter maker Contadores de Agua de Zaragoza SA (Contazara).
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2010
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