The Israeli firm is credited with the development of the water-saving irrigation technique, and has spread its knowledge worldwide to become the global leader in efficient irrigation and farm-management technologies.
When Mexichem announced an agreement to buy 80 percent of Israeli irrigation firm Netafim in early August, it marked a new step forward, as the company moves more toward solution-based products that address current global trends.
Netafim is the world leader in drip irrigation and advanced farm-management techniques. The company was founded in Kibbutz Haterim, which will retain 20 percent of Netafim’s share capital. It was the driving force behind Israeli development in agriculture techniques that make the best possible use of limited water resources – making the desert bloom.
Netafim has achieved a strong financial performance over the past few years, with gains in top line growth and improved profitability. It recorded sales of US$855 million in 2016. Mexichem will pay US$1.895 billion for its 80 percent stake, which it will fund with a combination of cash and debt.
“This acquisition strengthens Mexichem’s investment thesis by significantly broadening our portfolio of specialty products, diversifying and expanding our end-markets and broadening our geographic footprint,” said Mexichem CEO Antonio Carrillo when the acquisition was announced. He mentioned that the Netafim purchase would advance his company’s drive into specialty products and solutions, and establish it as a leading innovator in the high growth micro-irrigation market.
“Netafim positions us to become a leading developer of solutions to address food and water shortages, and respond to the need of increase crop yields and meet higher sustainability standards for fertilization,” Carrillo added.
Netafim products and solutions are sold in over 110 countries, and the company offers much more than just drip irrigation – it specializes in turnkey irrigation products that include bulk water supply, advanced irrigation systems and digital crop management and automation systems, supported by engineering, agronomic, technical and financing services – all of which adhere to its mission to help the world grow more with less.
To see the August 2017 press release, click here.