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Mexichem will acquire an 80% stake in the Israeli irrigation firm Netafim for $1.9 billion. Mexichem says the purchase will advance its move into specialty, high-growth products. Netafim makes water-saving drip and micro-irrigation systems used in so-called precision agriculture. It was cofounded in 1965 by the agricultural community Kibbutz Hatzerim in Israel’s Negev desert. The community will retain a 20% stake. Netafim has 4,300 employees and booked $855 million in revenue last year. In addition to agriculture, Netafim’s products can be applied to industrial sectors such as heating and cooling, Mexichem says.
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