Arko will pay an additional $1.5 million subject to Aero Housewares meeting financial milestones.
Arko Holdings Ltd. (TASE: ARKO) today announced that it was investing in industry. Arko is acquiring Aero Housewares Inc. of the US, a maker of plastics houseware items, which is losing money, for $5.5 million. Arko will pay an additional $1.5 million subject to Aero Housewares meeting financial milestones set in the contract. Arko intends to use its expertise in turning companies around by using its contacts with foreign financial institutions and investment banks to improve Aero Housewares’ financial environment.
Aero Housewares markets most of its products through US retailers, including Office Depot Inc. (NYSE:ODP), K-Mart and Wal-Mart Stores Inc. (NYSE:WMT). The company had $37 million in sales in 2005 and is expected to have $45 million this year.
Published by Globes [online], Israel business news - www.globes.co.il - on November 19, 2006
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