The deal for selling 80% of drip irrigation company Netafim Ltd. to Mexican company Mexichem at a company value of $1.895 billion has been completed. The deal was signed last summer, and has now been completed with the obtaining of regulatory approval. Mexichem has a market cap of over $6 billion on the Mexican stock exchange.
Kibbutz Hatzerim will continue to hold 20% of Netafim after the deal. Netafim said today, "The deal will strengthen the company's global standing in smart irrigation, while leveraging Mexichem's assets and its geographic deployment, basket of products, and many years of operating experience." Netfim president and CEO Ran Maidan said, "The partnership with Mexichem will create another big step forward for Netafim, and enable it to accelerate its growth, while expanding the basket of solutions and services that it offers to its customers." Maidan added that even after the deal is completed, Netafim would retain its Israeli character and its activity center in Israel for many years.
"Not only will the acquisition of Netafim position us as a leader in the rapidly growing smart irrigation market, but Netafim's research and development capabilities will help us upgrade the existing portfolio," said Mexichem CEO Daniel Martinez-Valle.
Netafim has over 4,500 employees in Israel and overseas, 29 subsidiaries, and 17 manufacturing plants. Its products are sold in over 110 countries.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 7, 2018
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