Mexichem Completes 80% Acquisition of Drip-Irrigation Company Netafim
The deal values the Israel-based drip-irrigation pioneer at $1.9 billion
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With annual revenues of $5.35 billion and around 18,000 employees, Mexichem is one of the largest chemical and petrochemical companies in Latin America.
A Netafim manufacturing plant. Photo: Amit Sha'al
Mexichem bought its shares from London-based private equity firm Permira, which acquired 61.3% of Netafim’s shares in 2011, and from two Israeli Kibbutzim.
Hatzerim, a Kibbutz in Israel’s south and one of Netafim’s major stakeholders, will retain 20% ownership in the company.
Established in 1965 in Israel, a country suffering prolonged water scarcity, Netafim is the largest drip-irrigation manufacturer in the world. The company has 17 manufacturing plants and almost 30 subsidiaries in Israel and abroad, and employs around 4,500 people.
“The partnership with Mexichem will create a major step forward for Netafim, and will enable us to accelerate growth, while providing a more comprehensive set of solutions and services to our customers,” said Netafim President and CEO Ran Maidan in a statement. He added that Netafim’s headquarters and core activities will remain in Israel “for many years to come.”
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“Netafim adds an important element to Mexichem’s strategic profile. In addition to making us the leader in the fast-growing micro-irrigation market, Netafim brings R&D and technology to transform existing products in our portfolio into smart solutions that can assist our end customers in managing their networks and operating sites,” said Mexichem CEO Daniel Martínez-Valle in a statement.
In the bidding for Netafim, Mexichem beat Singapore's governmental holding company Temasek Holdings, Connecticut-based toolmaker Stanley Black & Decker, and Annapolis, Maryland-based industrial corporation Colfax, according to previous Calcalist reports.
