Water investment co Whitewater looks to raise $10m

The funds are to finance its expansion abroad.

Whitewater Technology Group, which invests in cutting-edge Israeli water technologies, plans to raise $10 million to expand its activity in target markets in Brazil, India, and China. The company will raise the capital over several months, led by Giza Singer Even Ltd.

Whitewater chairman Ori Yogev confirmed the report, saying that the most of the capital would be raised from Israeli investors, although foreign investors would also be approached. He said that most of the proceeds would be used to strengthen Whitewater's portfolio companies, with an emphasis on developing and expanding the company's international marketing network.

"The capital raised will also enable the company to consider acquiring more water technology companies. We will also consider merger opportunities," Yogev said. "We recently completed talks with companies in the Indian, Brazilian, and Chinese markets, and saw the reputation of Israeli water technology companies and the need to meet a range of needs in the field."

Whitewater has four portfolio companies, most of which are developing water security and drinking water quality monitoring technologies. CheckLight Ltd. uses bioluminescent bacteria to detect contaminants in drinking water, industrial water, and desalinated water. The company recently expanded its activity in the US and Chinese markets.

70% of Whitewater's activity is in foreign target markets.

Yogev points to a number of latest developments, which position Whitewater's portfolio companies at the forefront of the water treatment industry. "We're talking about a fairly new industry worldwide, and we have a good foothold in it. Our global business currently amounts to $10 million a year, and after the financing, which will enable us to penetrate and consolidate our position in the target markets, we'll reach $100 million turnover within 4-5 years."

Water industry sources estimate the annual turnover of the global water technologies industry at $500 billion and its annual growth rate at 8%. Yogev says that water industries will continue to develop in the next few years, because of the global water crisis and the need to lead ventures to improve urban water infrastructures and systems for using fresh water for agriculture.

Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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