Jain Irrigation buys 50 pc stake in Israeli Co

New Delhi, May 28 (UNI) Jain Irrigation Systems has decided to acquire 50 per cent of the share capital of an Israeli company through its Dutch arm for 21.5 million dollars in an all cash deal.

The deal was approved by the company board in a meeting held today, it informed the BSE.

Jain Irrigation has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.001 per cent of the share capital of Na'anDan Irrigation Systems, Israel for 21.5 million dollars in all cash deal, the company informed the bourse.

'' 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,'' said Jain Irrigation Chairman B H Jain.

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, he added.

The Indian company along with Kibbutz Naan on an equal basis would jointly control and manage Na'anDan. Of the 21.5 million dollar, 10.5 million dollar will be retained in Na'anDan for future growth.

It is will bring additional funding support in form of loan and/or guarantees to the tune of 7.5 million dollar for growth requirements.

The deal is expected to be closed early next month.

Kibbutz Naan is one of the largest and better-managed kibbutz in Israel. Kibbutz is a kind of cooperative society with members contributing and sharing the economic benefits from kibbutz assets and management.

On completion of the deal, NaanDan's name will be changed to 'NaanDan Jain Irrigation'. Jain Irrigation will be the platform for development of worldwide drip/sprinkler market for both partners.

The two companies have also agreed to provide long term guarantees for maintaining manufacturing facilities and employment in Israel.

NaanDan's global network includes manufacturing companies in the United States, 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.

Profit-making Naandan achieved a 75 million dollar revenue in 2006.

The Indian company had pioneered drip irrigation for small farmers in the country, had acquired two US companies manufacturing irrigation equipments in last one year to become number two in world in the field of drip / sprinkler irrigation.

UNI