Mexichem has reached a definitive agreement to acquire 80 percent stake in Netafim Ltd, a private irrigation company in Israel, for a total enterprise value of $1.895 billion.
Mexichem will buy the stake in the company from private equity fund Permira, which held a 61.3 percent stake in the Israeli pioneer of drip irrigation systems, and also from Kibbutz Magal and Kibbutz Hazerim, which respectively held six and 33 percent stakes.
Kibbutz Hatzerim, the founder, will retain the remaining 20 percent stake of Netafim’s share capital.
Based in Tel Aviv, Israel, Netafim is a global leader in developing, manufacturing and distributing advanced drip and micro-irrigation solutions, with local presence in more than 30 countries, 17 manufacturing plants, more than 4,300 employees and sales in more than 110 countries worldwide. Netafim’s advanced technologies and end-to-end solutions help growers across the world achieve higher and better crop yields while reducing the use of water and other inputs, such as manpower, nutrients and crop protection.
The transaction is expected to close during the fourth quarter of 2017. Once the transaction is completed, Mexichem will consolidate Netafim under its fluent business group for accounting purposes. Netafim will continue to operate under its current management and with its existing brand portfolio.
Mexichem has reached a definitive agreement to acquire 80 percent stake in Netafim Ltd, a private irrigation company in Israel, for a total enterprise value of $1.895 billion.
Mexichem will buy the stake in the company from private equity fund Permira, which held a 61.3 percent stake in the Israeli pioneer of drip irrigation systems, and also from Kibbutz Magal and Kibbutz Hazerim, which respectively held six and 33 percent stakes.
Kibbutz Hatzerim, the founder, will retain the remaining 20 percent stake of Netafim’s share capital.
Based in Tel Aviv, Israel, Netafim is a global leader in developing, manufacturing and distributing advanced drip and micro-irrigation solutions, with local presence in more than 30 countries, 17 manufacturing plants, more than 4,300 employees and sales in more than 110 countries worldwide. Netafim’s advanced technologies and end-to-end solutions help growers across the world achieve higher and better crop yields while reducing the use of water and other inputs, such as manpower, nutrients and crop protection.
The transaction is expected to close during the fourth quarter of 2017. Once the transaction is completed, Mexichem will consolidate Netafim under its fluent business group for accounting purposes. Netafim will continue to operate under its current management and with its existing brand portfolio.
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