NEW YORK (Reuters) - South African industrial group Bidvest Group Ltd will buy 14.59 percent of Icelandic Water Holdings for $13.5 million, the Icelandic spring water producer said on Tuesday.
Bidvest, which said earlier this year that it was looking at food-service expansion opportunities in Brazil, has the right to raise its interest to 20 percent in the future, according to Icelandic Water Holdings, which sells a spring water brand called Icelandic Glacial.
The investment “will enable us to broaden the range of products which we offer,” said Jon Olafsson, chairman and co-founder of Icelandic Glacial. “The international reach of Bidvest’s distribution operations will greatly assist our entry into new territories.”
Bidvest Chief Executive Brian Joffe will also take a seat on Icelandic’s board.
Icelandic Glacial is distributed in the United States by Anheuser-Busch InBev. Anheuser took a 20 percent stake in the company in July 2007 and subsequently increased its stake to over 23 percent.