April 9 (Bloomberg) -- Arad Group, an Israeli developer of water meters, has reached an agreement to buy a controlling stake in Mexico’s closely held water-meter maker Cicasa, according to a person with knowledge of the matter.
Arad will acquire 51 percent of Cicasa for $2.04 million with an option to purchase the remainder in either May 2019 or April 2024, the person said, asking not to be identified because the deal isn’t public yet. An agreement may be announced as early as today. A representative for Arad declined to comment.
The company, whose main customers are water utilities, gets about 80 percent of sales outside its home market including the U.S., U.K., China and Spain. It’s expanding in Latin America’s second-largest economy and such countries as France and Germany.
Arad is focusing on electronic water meters to improve efficiencies and cut leaks to win share from rivals including Itron Inc., the Liberty Lake, Washington-based maker of smart meters that reduce waste and energy, and Badger Meter Inc.
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