Zoko will pay Tatra and the American Truck Company $3 million plus royalties.
Zoko Enterprises Ltd. (TASE:ZOKO) has signed an agreement with the American Truck Company LLC, a joint venture of SDC International Inc. (Bulletin Board: SDCN) subsidiary Czech Tatra AS and Terex Corporation (NYSE: TEX) to be the exclusive Israeli agent for Tatra all-wheel-drive trucks, spare parts, and service. Zoko will pay $3 million for the franchise over 18 months, plus royalties on sales.
The agreement is a complementary measure to Zoko's acquisition of half of the rights in a joint venture between Israel Military Industries Ltd. (IMI) and Tatra to design, develop, and manufacture 4x4 wheeled armored cars on the basis of the Tatra chassis.
Tatra has a contract with the Ministry of Defense to provide maintenance services for the 300 trucks delivered to date. Zoko's agreement includes this contract
Zoko is the Israeli agent for Caterpillar (NYSE: CAT)
Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008