Permira, the global investment firm, announced today that a company backed by the Permira funds has entered into a definitive agreement to sell Netafim, Ltd., a global leader in smart drip and micro-irrigation solutions for sustainable agriculture and other applications, to Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) in an all-cash transaction for US$1.895 billion. Mexichem will acquire 80 percent of Netafim while Kibbutz Hatzerim, the founder, will retain the remaining 20 percent.
Since being acquired by the Permira funds in 2011, Netafim has undergone a period of tremendous growth and transformation, which included:
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Focusing on the core irrigation business and significantly enhancing its capabilities to deliver complete solutions to customers;
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Expanding meaningfully into a number of new key growth markets including China, India and Africa;
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Investing in production processes and R&D to fuel mass adoption of drip irrigation, including developing innovative new products for precision farming;
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Building a world-class leadership team; and
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Significantly growing revenue and EBITDA.
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