Mexico-based plastics and chemicals manufacturer Mexichem SAB de CV announced it has completed the acquisition of an 80% stake in Netafim Ltd., an Israel-based drip-irrigation developer and producer in an all-cash deal worth US$ 1.895 billion.
Mexichem bought its shares from London-based private equity firm Permira, which acquired 61.3% of Netafim’s shares in 2011, and other minority stakeholders. Kibbutz Hatzerim, founder of Netafim, will retain the remaining 20% stake of the company’s share capital.
With total sales of US$ 855 million for the year ended December 31, 2016, Netafim is the world's largest drip irrigation company.
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, one of them in Reynosa, Tamaulipas; 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 usage of water and other inputs, such as manpower, nutrients and crop protection.