Listed bottled water company Just Water International has bought Australian water dispenser company Clearwater Filter Systems for about A$14 million ($14.7 million).
Just Water is paying for Clearwater largely through shares and the final purchase price is subject to final profit figures for the 2006 year.
Payment for Clearwater will
be made in two tranches, with half paid immediately at the equivalent of 90c a share and the second instalment in August 2006, subject to the profitability target.
Just Water's 60 per cent owner, Tony Falkenstein, said he had been acquainted with Clearwater for many years. "I have a good feel of the business and what they do because we have always talked," he said.
"We have taken a long time before making the decision to go into Australia and feel pretty comfortable with what we are doing."
Of each tranche, 40 per cent will be paid in JWI shares. These shares cannot be sold for 12 months without Just Water's consent.
Clearwater will end up with 9 per cent to 10 per cent of the company and Falkenstein's holding will be diluted to about 53 per cent. The balance of the purchase will be paid in cash and using existing bank facilities.
Falkenstein expected Clearwater to add more than $1 million to its earnings before interest and tax by the end of the 2006 year.
Clearwater has a turnover of about A$9 million and has more than 18,000 water-dispensers.
Just Water has more than 40,000 water-dispensers.
- NZPA
