Arad Group Ltd. (TASE:ARD), which manufactures and markets water measurement systems, is expanding its business. The company, whose CEO is Gabi Yankovitz, today notified the TASE that it had completed the acquisition of a 60% controlling interest in Italian company Watertech, which has similar activity, for €16 million (nearly NIS 70 million).

The deal will be conducted through an allocation of shares by Watertech to Arad, which plans to pay for 60% of the cost with bank financing and the rest from its own resources

According to figures presented by Arad, Watermark develops, manufactures, and distributes equipment for reading home, industrial, and other water meters, mainly in Italy. In 2016, Watertech acquired a 62% controlling interest in Colombian company Lassa, which distributes water and gas meters in Colombia. Most of Watertech's manufacturing takes place in Canelli in northern Italy.

Watertech, founded in 1999, is led by Enrico Parodi, who owns the company together with his family. According to Arad, Parodi has decades of experience in water meters.

According to figures reported by Arad, Watertech had €21-23 million in annual revenue (consolidated with the Colombian company) in 2016-2017, and its annual net profit was €2.5 million.

Arad's share has risen 25% this year to a peak reflecting a NIS 1.1 billion market cap.

Published by Globes [online], Israel business news - en.globes.co.il - on October 9, 2018

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