Jain Irrigation to acquire over 50 per cent in Israel''s NaanDan for $21.5 million
29 May 2007
Mumbai:
Jain Irrigation Systems Limited through its wholly owned
subsidiary in the Netherlands will acquire 50.001 per
cent stake in Israel''s NaanDan Irrigation Systems C.S.
Ltd, for about $21.5 million, including a capital outlay
of $10.5 million to be infused in NaanDan for its future
growth.
The company would be controlled and managed jointly by
Jain Irrigation and Kibbutz Naan on an equal basis. Jain
is committed to bringing additional funding support in
the form of loan and/or guarantees to the tune of $7.5
million for the bona fide growth requirements of the company.
The
deal is expected to close next month.
NaanDan has manufacturing facilities in the US, Spain,
Mexico, Brazil, Chile and Australia and marketing subsidiaries
in France and Italy. The company has exclusive distributors
in over 50 countries and employs 550 people all over the
world.
NaanDan has achieved a $75 million revenue for 2006 and is a profitable company. Jain Irrigation has pioneered drip irrigation for small farmers in India and has the major market share in one of the fastest growing irrigation markets in the world.
Jain Irrigation acquired Chapin Watermatics Inc. of the US, another irrigation equipment provider with 2006 revenues of nearly $10 million, a leading manufacturer of drip tape in April 2006 while it completed acquisition of another US company, he $30 million Aquarius Brands Inc. in February 2007.
With
these acquisitions Jain Irrigation has become number 2
in world in the field of drip/sprinkler irrigation. Jain
Irrigation is on its way to becoming the worldwide leader
with this new acquisition and phenomenal growth in the
domestic markets.
On the completion of the proposed transaction, NaanDan''s
name will be changed to ''NaanDan Jain Irrigation C.S.
Limited''. The Company will be the platform for development
of worldwide drip/sprinkler market for both partners.
Both partners have agreed to provide long term guarantees for maintaining the manufacturing facilities and employment in Israel.
