Amiad will make an initial cash payment of US$192 000 with further performance based payments of US$75 000–US$165 000.
As part of the agreement, two private limited companies have been incorporated in India: Amiad Filtration Systems (India) Private Ltd and JSK Engg Private Ltd.
Amiad Filtration Systems (India) Private Ltd will develop a filtration business in India, including marketing, distribution, sales and support of filtration products and solutions. Amiad holds 60% of the shares of Amiad Filtration Systems (India) Private Ltd and Mehta holds the remaining 40%.
JSK Engg Private Ltd will develop other business streams, such as providing equipment for the power and oil & gas industries. Amiad holds 40% of JSK Engg Private Ltd and Mehta holds 60%.
Mehta has been appointed CEO both companies.
Amiad has targeted India as its main growth area in 2009.
Commenting on the acquisition, Arik Dayan, CEO of Amiad, said: “We are pleased to sign this agreement as, through the local knowledge and expertise of Mr Mehta and JSK, it will enable us to accelerate our growth and penetration in one of Amiad’s largest global markets. As we have said before, our strategy is to become a leading international water filtration company that can address the filtration needs of, and provide solutions for, the irrigation sector, industry and municipalities worldwide. This acquisition is an important step in that direction and one that will help us deliver shareholder value.”