Strauss Group to buy additional 15% of Haier Strauss Water JV
Following the share purchase the joint venture will be held 51% by companies of the Haier Group and 49% by Strauss Water.
Strauss Water will pay the Haier Group Company NIS 78.3 million within 90 days.
The price of the shares was determined based on the financial results of the joint venture for 2016 as agreed upon in the joint venture agreement.
The proceeds will be financed by a shareholder’s loan that Strauss-Group provided Strauss Water with.
The joint venture develops, installs, sells and services water purification solutions. The joint venture’s 2016 annual revenues totaled NIS 352 million, up 36% on the previous year’s sales.
For the first quarter of 2017 the joint venture’s sales totaled NIS 117.9 million, up from NIS 59.2 million in the first quarter of 2016, an increase of c100%.
The net profit of the joint venture for 2016 amounted to NIS30 million and net profit for the first quarter of 2017 amounted to NIS 9.5 million, compared to the net profit in the first quarter of 2016 of NIS 6.1 million, an increase of 55%. ■