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Mexichem to Acquire Majority Stake in Israeli Irrigation Firm Netafilm in USD 1.895bn Deal
Aug 09, 2017 (M&A Navigator via COMTEX) -- (C)2017 M2 COMMUNICATIONS http://www.m2.com

9 August 2017 - Mexico-based chemical company Mexichem, S.A.B. de C.V. (BMV: MEXCHEM) has agreed to acquire an 80% stake in Israeli-based smart irrigation firm Netafim, Ltd. from a company backed by the Permira Funds and other minority shareholders, the company said. The total enterprise value of the transaction is USD 1.895bn. Mexichem will fund the acquisition with a combination of cash and debt. Kibbutz Hatzerim, the founder, will retain the remaining 20% stake of Netafim's share capital. The transaction is subject to approval by Mexichem's shareholders and is expected to close during 4Q17. Once the transaction is completed, Mexichem will consolidate Netafim under its fluent business group for accounting purposes. Netafim will continue to operate under its current management and with its existing brand portfolio. Mexichem said the acquisition advances its drive into specialty products and solutions that strengthens it position in the micro-irrigation market. This acquisition will give Mexichem access to Netafim's smart technology, which can be applied to heating and cooling, water management, Datacom and other sectors, providing a platform from which to create smart industrial solutions around existing product lines that serve the infrastructure, housing and datacom markets. Mexichem said this acquisition strengthens its investment thesis by broadening its portfolio of specialty products, diversifying and expanding end-markets and broadening its geographic footprint. Netafim develops, manufactures and distributes advanced drip and micro-irrigation solutions, with local presence in more than 30 countries, 17 manufacturing plants, more than 4,300 employees and sales in more than 110 countries worldwide. Permira is a global investment firm advising funds with a total committed capital of approximately EUR 32bn (USD 35bn). Permira employs over 200 people in 14 offices across North America, Europe and Asia. Mexichem is provider of plastic piping, and a chemical and petrochemical company. The company has operations in over 30 countries, with more than 18,000 employees, 120 plants, two fluorite mines, 15 R and D laboratories and eight training academies. Mexichem has annual revenues of USD 5.4bn. J.P. Morgan acted as financial advisor to Mexichem in the transaction. Country: Israel Sector: Agriculture/Forestry Target: Netafim, Ltd Buyer: Mexichem, S.A.B. de C.V. Vendor: Permira Funds Deal size in USD: 1.895bn Type: Corporate Acquisition Financing: Cash Status: Agreed Buyer advisor: J.P. Morgan , , Comment:


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