Israel’s Arad Group has bought a controlling stake in Mexico’s water meter manufacturer Cicasa for US$2.04 million.
The Arad Group, a water meter manufacturer and solutions provider, acquired the 51 per cent share in Cicasa as part of a global growth plan.
Gabi Yankovitz, chief executive officer of the Arad Group, said: “The acquisition of Cicasa is in line with the international expansion strategy of the Arad Group.
“The deal will increase Arad’s revenues and the group will gain a strong foothold in the fast expanding Mexican market and the large Latin American market.”
By combining Arad’s advanced water measurement solutions with Cicasa’s existing products, the company will be able to substantially expand its selling abilities in current and future markets.
Mexican utilities are making great efforts to improve the measurement of water consumption in an attempt to reduce the level of non-revenue water, which stands currently at above 30 per cent in most large cities.
In 2013, Cicasa reported a net income of 1.1 million Mexican peso ($83,662) and revenues of 156.4 million pesos ($11.95 million).
In 2013, the Arad Group saw sales increase by 15.4 per cent due to high demand for smart water meters in the US, Israel and Spain.
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