Jain Irrigation acquires Chapin Watermatics of the US

03 May 2006

Jain Irrigation Systems Ltd has acquire 100-per cent shareholding of US-based Chapin Watermatics. Inc, New York, through its second generation wholly owned subsidiary, Jain (Americas) Inc, Ohio.

The deal was closed at $6 million in cash and debt with deferred payment terms for part consideration. Jain Irrigation will use FCCB funds for the acquisition.

Jain Irrigation says that it is the only company in the world that produces under one roof complete drip irrigation system including PVC and PE pipes, PVC and PE fittings, polytubes, emitting pipes and fittings, emitters, spray heads and jets, filtration and fertigation equipment, and green houses.

The company also undertakes projects on turnkey basis for transformation of wasteland through watershed planning and development. Its multi-product and diversified skill profile enables it bid for global agricultural projects getting underway in developing countries.

Marketing subsidiaries of Jain Irrigation in the US, Europe and Africa and their warehousing facilities will provide additional marketing and logistic support to Chapin Watermatics.

The acquisition will significantly enhance the company's ability to participate in turnkey projects in developing world markets while providing a strategic brand fit in matured markets of the US and Europe. Another important outcome will be the company's ability to be the only company in the world making complete product range suitable for all types of crops in various geographies for small as well as large farm holdings across the world. Irrigation markets worldwide are witnessing huge growth due to ever growing problem of water scarcity.