Mexichem, S.A.B. de C.V. announced that it has completed the acquisition of an 80% stake in Netafim, Ltd. from a company backed by the Permira funds after all the governmental authorizations and all the precedent conditions required by the Share Purchase Agreement have been obtained and completed.
Netafim is a privately-held Israeli company and a leader in precision irrigation solutions. The total enterprise value of the transaction is US$1.895 billion. Kibbutz Hatzerim retains 20% ownership in Netafim, which will maintain its headquarters in Israel. As previously-disclosed, Mexichem financed the acquisition with a combination of cash and debt.
The completion of this transaction has significantly advanced Mexichem’s long-term strategy to position itself as a world leader in specialty products and solutions serving high-growth markets.
“Finalizing this acquisition is a key milestone for Mexichem and one that will provide substantial opportunities for the Company in the periods ahead,” noted Antonio Carrillo, Mexichem’s outgoing Chief Executive Officer.
Daniel Martínez-Valle, Mexichem’s incoming Chief Executive Officer, continued “Netafim adds an important element to Mexichem’s strategic profile. In addition to making us a leader in the fast-growing micro irrigation sector, Netafim brings the R&D and technology to transform existing products in our portfolio into smart solutions that can assist our customers in managing their networks and operating sites. We look forward to benefitting from Netafim’s great talent and purpose-driven culture.”
Ran Maidan, Netafim’s President and Chief Executive Officer added, “The integration with Mexichem creates a major step forward for Netafim. By leveraging Mexichem’s global platform and resources, we will be able to accelerate our growth, while providing a more comprehensive set of solutions and services to our customers”.
Torsten Vogt, Partner and Co-Head of Industrials at Permira, said, “Netafim is an outstanding business with a critical mission of conserving and protecting vital water resources. We are very proud to have accompanied the company in recent years as it developed new technologies that revolutionized precision farming and successfully expanded into significant new markets to become a leading global platform for irrigation systems. We wish it continued growth and success as part of Mexichem.”
Commenting on the completion of this transaction, Juan Pablo del Valle, Chairman of Mexichem said, “The Netafim acquisition has enabled Mexichem to develop a strategic presence in the dynamic field of micro irrigation, a sector that is effectively addressing challenges related to global food and water shortages. I have full confidence that our respective management teams will successfully integrate our combined offerings to provide the best solutions to the agricultural and industrial customers we serve.”
Source: Mexichem
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