Netafim buys Central American irrigation co RyM

Netafim

The Israeli irrigation systems company has made its 29th acquisition, this time targeting the Central American market.

Israeli irrigation systems company Netafim Ltd. continues expanding its operations. Today, it reported acquiring 60% of the Costa Rican irrigation company RyM. Netafim declined to disclose details of this deal, but sources in the industry estimate that it totaled several million dollars, based on RyM's annual sales, estimated at over $10 million.

The remaining RyM stake will be owned by the company's prior controlling stakeholders, Alberto Arguio and Enrique Gonzales. Until its acquisition by Netafim, RyM had distributed the Israeli company's products in Costa Rica and several other Central American states. The company has about 100 employees.

Following its acquisition of the Costa Rican company, Netafim has announced that it will establish a new subsidiary, the 29th in number, which will be called Netafim Central America and be devoted to bolstering Netafim's status in the region, while targeting states such as Panama, Honduras, Nicaragua, Guatemala and El Salvador.

Netafim CEO Ran Maidan told "Globes" today, "The acquisition of RyM will open up significant opportunities, since this is a developing Central American market, with a high growth potential. This area is one of the world's largest producers of sugar cane, coffee, bananas and other cultivars Netafim specializes in. Based on RyM's proven record and success, the current deal will provide new opportunities to leverage our technological capabilities, while consolidating our status as the world's leading irrigation company."

Netafim employs about 4,300 workers worldwide, in 17 production plants and 29 subsidiaries. According to company reports, it supplies smart irrigation solutions to more than 110 countries. The product line of Netafim, based in southern Israel's Kibbutz Hatzerim, includes drippers and sprinklers, agricultural crop management solutions, automation systems for agriculture, gardening and mining, and irrigation solutions for greenhouse and field crops. Netafim says that its products enable farmers to produce more while consuming fewer resources. The company is controlled by the Permira Fund and, according to estimates, had $900 million revenue in 2015.

Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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