Shalag Industries Ltd. (TASE:SALG) signed an agreement to acquire Texsus s.p.a from its controlling shareholder and directors for €51 million on August 8, 2019. Pursuant to the consideration, €5 million payable to the controlling shareholder holding 90.9% stake in Texsus s.p.a, will be deposited in a trust account for a period of 24 months since completion of the deal, 50% of it will be released after 12 months, a 30% of the compensation is for the directors who hold the remaining 9.1% stake, and shall be deposited at a trustee for a period of up to 3 years and will be released in accordance with the completion of steps stipulated in the signed agreement. Further, from the compensation will be deducted from the net financial debt of Texsus at the closing date. 90.9% of Texsus shares are held by the Texsus’ controlling shareholder and the remaining 9.1% are held by 2 directors of Texsus, in equal parts. Shalag will finance 50% of the compensation from its own resources. The remainder will be financed from a long term bank loan. On completion of this transaction, Texsus will be operated as a subsidiary of Shalag Industries Ltd and will continue to be managed by Federico Micheloti and on the Marketing side by Barbara Bulleri. The completion date of the deal will be one month after the signing of the deal. As of August 13, 2019, This transaction will be completed within the next few weeks. Giorgio Beretta of BDO Italia S.p.A. acted as due diligence provider to Shalag Industries Ltd.