SodaStream has acquired the distribution rights for Scandinavia and Baltic countries from Empire AB for NIS 36 million (about $9.5 million), the Israeli maker of home carbonated beverage systems which is listed on NASDAQ announced Thursday.
The deal will come into effect in January 2012, when SodaStream begins directly marketing its products in Sweden, Finland, Norway, Denmark, Estonia, Latvia and Lithuania.
"Empire AB did an excellent job building SodaStream's activity in these countries and mainly in Sweden, where we enjoy a 25% household penetration and hold more than 10% of the home carbonated beverage market," said SodaStream International CEO Daniel Birnbaum.
"We are happy to take over the distribution of our products in these expansive and successful markets and expect to increase profit margins on sales of our products.
"We believe that there are considerable opportunities to increase our presence in the area of which we can advantage under our management. We intend to launch advertisement campaigns to further increase SodaStream's already broad customer base in these markets."
As part of the deal, SodaStream will take over the distribution array, including all client agreements therein, and will also retain the professional personnel dealing in the distribution activity in these countries.
Both parties signed a service agreement in order to ensure the seamless transfer of the activity.
to read this report in Hebrew