Mexichem, S.A.B. de C.V. has reached an agreement to take over 80% stake in Netafim, Ltd., an Israeli private company. Kibbutz Hatzerim, the founder, will retain the remaining 20% stake of Netafim’s share capital. The transaction with total enterprise value of US$1.895 billion is likely to complete during the fourth quarter of 2017.
Based in Tel Aviv, Israel, Netafim, the world’s largest irrigation company, is a global leader in developing, manufacturing and distributing advanced drip and micro-irrigation solutions, with the business presence in more than 30 countries, 17 manufacturing plants and sales in more than 110 countries. 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 with the support of advanced technologies of Netafim. The company’s total sales at the end of the year on December 31, 2016, was US$855 million.
Antonio Carrillo Rule, Mexichem’s Chief Executive Officer, said, “This is a transformational acquisition that advances Mexichem’s drive into specialty products and solutions and establishes us as a leading innovator in the high growth, micro-irrigation market. Netafim positions us to become a leading developer of solutions to address food and water shortages and respond to the need of increasing crop yields. Netafim has been at the forefront of creating smart solutions for the irrigation market. Mexichem access to this smart technology which can be applied to heating and cooling, water management sectors. We expect to leverage Netafim’s resources and expertise to create innovative new solutions across Mexichem’s specialty products. We also see substantial operating efficiencies over time in raw material procurement, logistics, and the sharing of production processes and technology know-how.”
“We are proud to have won the trust of a leading company such as Mexichem, and believe that together we will have an improved cost position and broader portfolio to support continued profitable growth and to extend our reach to new customers and geographies, said, Ran Maidan, Netafim’s Chief Executive Officer