SodaStream, the Israeli maker of home beverage carbonation systems, said Friday it had offered buy its French distributor OPM France SAS for 17.5 million euros ($20.8 million) to accelerate growth in the market.
- No, Paris Hilton did not join forces with Israeli scientists to reinvent water
- Israeli schools flout ministry ban with trips to Coca-Cola and other corporate facilities
- SodaStream's makeover is a success, but can the stock keep climbing?
SodaStream said the deal for the company, which generates about 50 million euros of annual revenues from the sale of SodaStream products, was contingent on reaching a deal with labor unions.
The acquisition aims to give a boost to sales in France, which have lagged behind markets where SodaStream operates through its own subsidiaries, as well as lift operating margins by saving it the distribution fee it now pays OPM.
SodaStream has sought to buy its local distributors in the most strategic of the 45 country markets it operates in and then increase marketing budgets. Six years ago it bought Empire AB, which operates in Scandinavian and Baltic countries. SodaStream shares ended up 2.7% at 251.70 shekels ($72.20).