|By PR Newswire||
|April 10, 2014 03:01 AM EDT||
KIBBUTZ DALIA, Israel and MEXICO CITY, April 10, 2014 /PRNewswire/ --
Cicasa is a privately held company which specializes in the development, manufacturing and distribution of water measurement equipment. Founded in 1953, the company has its own foundry.
"The acquisition of Cicasa is in line with the international expansion strategy of the Arad Group," said Gabi Yankovitz, CEO 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% in most large cities. A recent report published by the OECD on proposed water reform in Mexico indicates that non-revenue water reached 40% in Mexico City.
By using Arad's advanced water metering management and control systems, Mexican utilities will benefit from improved financial, operational and customer care performance, exact measurement, automated and remote water reading and real-time information availability.
Under the terms of the agreement, Arad will acquire 51 percent of Cicasa for $2.04 million. Arad holds an option to buy the remaining 49% of the company in May 2019, or April 2024.
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).
About the Arad Group
The Arad Group is a world leader in the field of water measurement solutions and services. The company specializes in designing, developing and manufacturing high-quality meters, AMR & AMI systems and advanced MDM systems and technologies.
Arad's patented solutions and products are specifically designed to meet the needs of utilities, waterworks companies and agriculture, and are aimed at reducing water waste, improving water metering management capabilities and cost saving.
VP International Sales & Marketing
Email: [email protected]