Permira Funds LLC has acquired 61% of drip irrigation company Netafim Ltd. from Kibbutz Yiftah, Kibbutz Magal, Tene Investments Ltd., and Markstone Capital Partners Group LLC at a company value of $900 million in cash and assumption of loans. Kibbutz Hatzerim owns the rest of Netafim and has first refusal rights on the purchase of shares.
The price tag reflects a price per share of $57, 2% less than Netafim's original asking price. For Markstone, the sale is an excellent deal; it paid $55 million for its 20% stake in Netafim five years ago.
Kibbutz Yiftah owns 8% of Netafim, Kibbutz Magal owns 23%, and Tene owns 10%. Together with Markstone, they all put up their stakes in Netafim for sale. Markstone co-managing director Amir Kess handled the sale negotiations.
Netafim has more than 2,000 employees at 13 plants in 11 countries, including four plants in Israel at Magal, Yiftach, and Hatzerim. The company has over 30 subsidiaries and representative offices in over 110 countries.
Permira is also interested in acquiring Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) from Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH). In 2004 it acquired Israeli digital pay-TV solutions developer NDS Ltd. together with News Corporation (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV).
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2011
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