August 8, 2017

In a deal valued at approximately $1.5B, Mexican industrial group Mexichem has agreed to buy an 80 percent stake in Israeli irrigation firm Netafim. Mexichem is acquiring the majority stake currently owned by private equity and buyout firm Permira, and smaller stakes from Israel’s Kibbutz Magal and Kibbutz Hatzerim, which will remain a minority shareholder.

Mexichem is a petrochemical giant that operates more than 120 production plants in over 30 countries, and has a market value of $6 billion.

Netafim pioneered drip irrigation technology, has 17 manufacturing plants and 4,300 employees, and offers crop management technologies such as monitoring and control and dosing systems, and crop management software.

The deal is expected to close in the fourth quarter of 2017.