PE firm Permira to buy 61 % of Israel’s drip irrigation company Netafim
22 Sep 2011
European private equity firm Permira today said that it will buy up to 61 per cent stake in the world's largest smart irrigation company, Israel's Netafim Ltd.
Although Permira did not disclose the financial terms of the deal, several media reports suggested that the PE firm paid $870 million, including the assumption of $160 million of Netafim's debts.
London-based Permira is buying the stake from the three kibbutzim (local co-operative communities) Hatzerim, Yiftach and Magal and Israeli funds Markstone Capital Partners Group and Tene Investment Funds.
Kibbutz Magal holds a 23-per cent stake in Netafim, Kibbutz Yiftach with 8 per cent, Markstone with 20 per cent, Tene holds 10 per cent and Kibbutz Hatzerim owns the remaining 39 per cent.
Kibbutz Hatzerim will remain a significant shareholder with Kibbutz Magal also retaining a minority stake.
Netafim had put itself for sale last year and had several interested private equity suitors. Apax Partners nearly closed the deal, but was piped by Primera with a higher bid.
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