Netafim

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Netafim
Private
Industry Drip and Micro-irrigation Technologies
Founded 1965; 53 years ago (1965)
Headquarters Hatzerim, Israel
Key people
Ran Maidan
( President & CEO)
Number of employees
over 4,300
Website www.netafim.com

Netafim is an Israeli manufacturer of irrigation equipment. The company produces drippers, dripperlines, sprinklers and micro-emitters. Netafim also manufactures and distributes crop management technologies, including monitoring and control systems, dosing systems, and crop management software.

History[edit]

Netafim holds an over-30% share of the global drip irrigation market.[1] The company recorded revenues of over $822 million in 2015.

Button dripper

Netafim is headed by President & CEO Ran Maidan, and jointly owned by Mexichem (80%) and Kibbutz Hatzerim (20%)[2], following aextensive bidding by half a dozen interested parties, including U.S. industrial technologies company Fortive Corp (FTV.N), Singapore’s Temasek Holdings [TEM.UL], U.S. tools maker Stanley Black & Decker (SWK.N), Chinese investment fund Primavera and Chinese pipe maker Ningxia Qinglong (002457.SZ).[3]

Timeline[edit]

  • 1960-1965 - Water engineer and inventor Simcha Blass carries out tests on the world's first dripper device.[1]
  • 1965 - Kibbutz Hatzerim signs agreement with Blass to establish Netafim
  • 1966 - Introduces world’s first commercial dripper
  • 1978 - Introduces world’s first pressure compensated (PC) dripper
  • 1981 - Opens first subsidiary outside of Israel
  • 1998 – Merges into single corporation
  • 2007 - Introduces world’s first low-flow dripper
  • 2011 - Permira funds acquires controlling interest[4]
  • 2013 - Named 2013 Stockholm Industry Water Award (SIWI) Laureate[5]

On August 7, 2017, Mexichem SA announced it would acquire Netafim from Permira Holdings Ltd. for $1.5 billion.[6][7][8][9]

Ownership[edit]

In 1973, Netafim brought in its first partner, Kibbutz Magal, based in the Sharon region, and then added a second partner, Kibbutz Yiftach, based in the Upper Galilee region, in 1978. Netafim Hatzerim, Magal and Yiftach merged to create Netafim (ACS) Ltd in 1998. In 2006, Markstone Capital Partners Group and Tene Investment Funds acquired a share of Netafim. In 2011, the European private equity fund Permira acquired a majority (61%) stake in Netafim, with Kibbutz Hatzerim holding 33% and Kibbutz Magal holding 6%. In 2017 these owners sold 80% of Netafim to Mexichem, with Kibbutz Hatzerim retaining 20%.

Products[edit]

Netafim offices at Hatzerim

Netafim produces drip irrigation systems and other water technologies intended to increase yields and improve crop production while preserving quality and quantity of water and soil fertility. The company products are designed to provide solutions in the areas of efficient irrigation, control and agronomy for a range of field crops, orchards and vineyards grown under varied topographic and climatic conditions throughout the world. At present Netafim is developing ecological solutions for producing fuel from alternative sources. Concurrently, Netafim is launching a low pressure irrigation system that offers a solution for areas where water pressure and/or electrical infrastructure do not permit using high pressure systems. This development will facilitate introduction of the drip irrigation systems into additional agricultural areas.

Global presence[edit]

In 1981, the company opened NII, its first international subsidiary, in the US. Today Netafim maintains 29 subsidiaries [10] and 16 manufacturing plants worldwide, and employs over 4,000 workers. In January 2014 it was announced on Bloomberg that Netafin had won $62 million water project contract to build an automated water pipeline network in southern state of Karnataka, India.[11]

Drip irrigation & sustainability[edit]

Netafim is involved in several global sustainability initiatives. The company is a member of the UN CEO Water Mandate and UN Global Compact (UNGC), and was named 2013 Stockholm Industry Water Award Laureate for its contribution to sustainable water management. According to company sources, the use of drip irrigation for rice and tomatoes cuts down on greenhouse gases and nitrous oxide associated with algae blooms. [12]

See also[edit]

References[edit]

  1. ^ a b "Netafim, $500 million in Debt Financing Round". AG Funder News. 19 March 2015. Retrieved 10 March 2017. 
  2. ^ Reed, Jhon (August 8, 2017). "Mexichem to buy Israeli irrigation specialist Netafim". Financial Times. 
  3. ^ "Israel irrigation firm Netafim draws interest from 6 bidders: report". Reauters. June 14, 2017. 
  4. ^ Permira buys 61 pct of Israel's Netafim, reuters
  5. ^ Stockholm Industry Water Award. "SIWI". Netafim, a pioneer and leading provider of drip and micro-irrigation technology worldwide, has been named the 2013 Stockholm Industry Water Award laureate.
  6. ^ Lombardo, Cara; Harrup, Anthony (August 7, 2017). "Mexichem to Buy Netafim from Permira Funds". The Wall Street Journal. New York City, New York, United States. Retrieved August 10, 2017. 
  7. ^ Reed, John (August 7, 2017). "Mexichem to buy Israeli irrigation specialist Netafim". Financial Times. United Kingdom. Retrieved August 10, 2017. 
  8. ^ http://jewishvoiceny.com/index.php?option=com_content&view=article&id=18785:iconic-israeli-company-netafim-sold-for-1-5b&catid=107&Itemid=773
  9. ^ https://www.reuters.com/article/us-mexichem-netafim-idUSKBN1AN0GP
  10. ^ Netafim buys Central American irrigation co RyM
  11. ^ Archana Chaudhary (23 January 2014). "Netafim to Build Largest India's Drip-Irrigation Project". Bloomberg. Retrieved 10 March 2017. 
  12. ^ The secret of Israel's water miracle and how it can help a thirsty world

External links[edit]