Proposed acquisition
November 05 2009 - 6:11AM
UK Regulatory
TIDMAFS
RNS Number : 0266C
Amiad Filtration Systems Ltd
05 November 2009
5 November 2009
Amiad Filtration Systems Ltd.
("Amiad" or "the Company")
Proposed Acquisition of Arkal Filtration Systems Cooperative
Agricultural Society Ltd.
The Board of Amiad, a producer and global supplier of automated water filters
and filtration systems for the industrial, municipal and irrigation markets,
announces that it has signed a non-binding term sheet to acquire Arkal
Filtration Systems Cooperative Agricultural Society Ltd. ("Arkal") from its
existing shareholders - Kibbutz Beit Zera and Bermad Industries. The acquisition
is subject to the signing of definitive agreements, the approval of the relevant
regulatory authorities in Israel and of the creditors of Kibbutz Beit Zera, and
the completion of due diligence.
Under the terms of the non-binding term sheet, Arkal has agreed to enter into an
exclusive period of 90 days, to allow for the preparation of definitive
agreements, receipt of the requisite approvals and a fuller legal and accounting
due diligence on Arkal to occur. There is no certainty that a transaction will
be concluded.
Rationale for Acquisition
Arkal is a leading supplier of water filtration solutions, with particular
presence in the irrigation market. It is expected that the addition of Arkal's
product range, and sales and marketing infrastructure would considerably enhance
Amiad's offering in the irrigation market, as well as in the industrial and
municipal markets. The enlarged group would have a greatly expanded product
portfolio, geographical spread and sales team.
Proposed Terms of the Transaction
Under the terms of the non-binding term sheet, the consideration for Arkal would
be satisfied by a combination of cash payment and the issue of new ordinary
shares of 0.5 NIS, to be finalised on the closing of the transaction.
Amiad will provide a further update in due course.
Enquiries:
+-----------------------------------------+------------------------------+
| Amiad Filtration Systems Ltd. | |
+-----------------------------------------+------------------------------+
| Arik Dayan, Chief Executive Officer | +972 4 690 9500 |
| Rivka Kalmanzon, Chief Financial | |
| Officer | |
+-----------------------------------------+------------------------------+
| | |
+-----------------------------------------+------------------------------+
| Panmure Gordon | |
+-----------------------------------------+------------------------------+
| Andrew Godber | +44 20 7459 3600 |
+-----------------------------------------+------------------------------+
| | |
+-----------------------------------------+------------------------------+
| Corfin Communications | |
+-----------------------------------------+------------------------------+
| Harry Chathli, Claire Norbury | +44 20 7977 0020 |
+-----------------------------------------+------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
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