Jain Irrigation - Buys 50% Stake In Na'anDan, Israel

Jain Irrigation Buys 50% Stake In Na'anDan, Israel

Jain Irrigation Systems has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.001% of the share capital of Na'anDan Irrigation Systems, Israel for $ 21.5 mn in all cash deal.

According to an official release issued by the company to the BSE today, it along with Kibbutz Naan on an equal basis would jointly control and manage Na'anDan. Of the $21.5 mn, $ 10.5 mn will be retained in Naandan for future growth.It is further committed to bring additional funding support in form of loan and/or guarantees to the tune of $ 7.5 mn for bona fide growth requirements. The closing is expected to take place early next month.

On the completion of the proposed transaction, Na'anDan's name will be changed to "Na'anDan Jain Irrigation". Jain Irrigation 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.

NaanDan's global network includes manufacturing companies in the USA, Spain, Mexico, Brazil, Chile and Australia and marketing subsidiaries in France and Italy. Naandan has exclusive distributors in over 50 countries and employs 550 people worldwide. Naandan has achieved a $75 mn revenue for 2006 and is a profit making company.

B H Jain, chairman, Jain Irrigation said: "This is a historic deal wherein the fastest growing irrigation company in the world, has joined hands with Na'anDan, which is one of the earliest pioneers of the irrigation technology having global presence. We will be able to leverage their technology to improve productivity of Indian agriculture and use their access to global markets to increase exports from both the countries".

Source : Business Standard