Jerusalem, July 12 - Israeli food company Strauss Group said on Sunday it had signed a deal to buy water purifier company Tana Industries for 291 million shekels ($73 million).
Strauss said in a statement the move, being made though its H2Q water unit, was part of its strategy to grow its water business. H2Q will be integrated into a new subsidiary, Strauss Water.
The deal is still subject to a number of checks and conditions.
Strauss said it expected Strauss Water to be one of the group's growth drivers in coming years.
Tana is held by several investors, the largest of which is the FIMI mezzanine fund, which owns 41 percent.
Through its Tami4 brand name, it makes bars of hot and cold water, which are filtered and purified, as well as coolers and sub-sink systems.
Tana's revenue in 2008 was 248 million shekels and operating profit was 34.14 million shekels. Operating profit is forecast to grow to 48 million to 50 million shekels in the 12 months ending Sept. 30, 2009, Strauss said.
It grew by 20-25 percent on all parameters in the first six months of 2009, Strauss added.
Strauss, Israel's second-largest food and beverage company, entered the drinking water market over two years ago when it invested in H2Q, a developer of a drinking water maintenance technology. Strauss will gradually combine H2Q and Tami4's activities.
($1 = 3.97 shekels)