Jain Irrigation to buy Israeli firm

MUMBAI: Jain Irrigation Systems Ltd (JISL), the pipes and irrigation equipment maker, has signed an agreement to acquire 50% stake in Israel’s Naandan Irrigation Systems in an all-cash deal for $21.5 million.

DNA Money had first reported about the stake buyout in its March 16 edition.

On completion of the proposed transaction, NaanDan’s name will be changed to NaanDan Jain Irrigation C S Ltd and both partners have agreed to provide long-term guarantees for maintaining the manufacturing facilities and employment in Israel.

Anil Jain, MD, Jain Irrigation, said, “We will able to leverage their technology to improve productivity of Indian agriculture and use their access to global markets to increase exports from the country.”

NaanDan is the pioneer in the development of drip irrigation and sprinklers systems.

The company would be controlled and managed jointly by Jain Irrigation and Kibbutz Naan on an equal basis. Jain is committed to bring additional funding support in form of loan and guarantees to the tune of $7.5 million for the bona fide growth requirements of the company.

The closing is expected to take place next month. The company has lined up Rs 300 crore for expansions in fiscal 07-08.