Hyflux has agreed to eventually buy a 30 per cent stake in European consumer water technology company Kaqun Europe for US$8 million, the Singapore-based water treatment specialist announced on Wednesday after the market closed.
Kaqun and Hyflux will also develop a line of products under the brand "ELO" to be sold in the Asia-Pacific, the Middle East and Africa. The product line will be sold through a new company called Elo Water, in which Hyflux Consumer Products will own a 70 per cent stake and Kaqun Europe will own the remaining 30 per cent.
Kaqun Europe was launched in 2002 and sells beauty products that use its particular brand of water. The Kaqun brand is mostly sold in Europe and the United States through direct sales and distributors.
"We see increasingly attractive opportunities in the consumer segment as consumers take greater interest in and responsibility for their own health," Hyflux chief executive Olivia Lum said in a statement. "By combining our expertise in water, we will be able to bring continuous innovation to the brand that will enable us to take it to greater heights."
Hyflux shares gained 1.5 per cent to close at 67.5 Singapore cents on Wednesday.