Israel's SodaStream Offers to Buy Its French Distributor

SodaStream said the deal for OPM was contingent on reaching a deal with labor unions

An employee uses a forklift truck to prepare pallets of SodaStream products for export at the SodaStream International Ltd. factory in Mishor Adumim, near Jerusalem, Israel, on Wednesday, Aug. 17, 2011.
Ariel Jerozolimski/Bloomberg

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.

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).