Netafim Acquired By Mexichem For $1.5 Billion
Israeli irrigation company Netafim has been acquired for $1.5 billion by Mexican petrochemical firm Mexichem. Mexichem have agreed to retain R&D and production in Israel for at least 20 years as a commitment to maintain the company’s presence there.
Established in 1965, Netafim is the largest irrigation company in the world, with sales in over 110 countries totalling $855 million. It is renowned for creating smart solutions to conserve and protect water resources, such as low-flow drip irrigation, which reduces water usage by up to 75 percent. Netafim provides pipes, sprinklers, agricultural equipment and more, equipped with advanced sensor technology that can measure temperature, nutrient levels, humidity and other useful information.
Mexichem aims to develop innovative new solutions to address food and water shortages in terms of sustainability and increased crop yields. They will use Netafim’s expertise and resources to create these solutions across a range of industries, including agriculture, healthcare, transportation and energy.
Mexichem CEO Antonio Carrillo Rule stated that “Netafim has a long history of innovation and technological leadership in the field of irrigation, and the acquisition will give Mexichem access to this advanced technology, which will eventually serve as a basis for ‘smart’ solutions in other industrial sectors,” including “heating and cooling, water management and Datacom.”
Netafim’s founder, Kibbutz Hatzerim will keep a 20% stake in the firm. The deal is expected to be completed by the fourth quarter of 2017.
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