Mexichem, S.A.B. de C.V. (BMV:MEXCHEM *) completed the acquisition of 80% stake in Netafim Ltd. from funds managed by Permira Advisers Ltd., Kibbutz Magal and Kibbutz Hatzerim.
February 06, 2018
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Mexichem, S.A.B. de C.V. (BMV:MEXCHEM *) entered into a definitive agreement to acquire 80% stake in Netafim Ltd. from funds managed by Permira Advisers Ltd., Kibbutz Magal and Kibbutz Hatzerim for an enterprise value of $1.9 billion on August 6, 2017. The consideration will be paid in cash. Kibbutz Hatzerim, the founder, will retain the remaining 20% stake in Netafim. Mexichem will fund a portion of the acquisition from the $1 billion bond offering, $200 million from the credit facility and through cash on hand for $300 million. Mexichem, S.A.B. de C.V. signed a credit facility with BBVA-Bancomer of up to $200 million. The resources of this credit facility will be used to complete Netafim’s acquisition and could substitute the use of the revolving credit facility. Netafim reported total sales of $855 million for the year ended December 31, 2016. On completion, Mexichem will consolidate Netafim under its Fluent Business Group for accounting purposes. Netafim will continue to operate under its current management and with its existing brand portfolio. Netafim will maintain its headquarters in Israel. The transaction is subject to customary closing conditions, including approval by Mexichem's shareholders meeting, antitrust and regulatory review. The transaction was approved by the Federal Trade Commission on August 25, 2017. The deal received the approval of the antitrust authority in Brazil CADE on January 19, 2018. Closing of the transaction is subject to the satisfaction of customary closing conditions, including any remaining required regulatory approvals. The transaction is expected to close during the fourth quarter of 2017.
Goldman Sachs, Centerview Partners LLC and Bank of America Merrill Lynch acted as financial advisors to the Permira funds and Netafim. Allison Schneirov, Alexandra McCormack, Christopher Barlow, Brett Fleisher, Laura Kaufmann Belkhayat, Gregg Noel, Regina Olshan, Gavin White, Frederic Depoortere, Maria Raptis, Resa Schlossberg and Yossi Vebman of Skadden, Arps, Slate, Meagher & Flom LLP and Doni Toledano, Nitzan Aberbach, Roy Caner, Lior Oren, Dan Sela, Yoav Dankner, Roy Harash and Michal Rothschild of Erdinast, Ben-Nathan & Co. acted as legal advisors to the Permira funds and Netafim. J.P. Morgan acted as financial advisor to Mexichem. James Olley of Montfort Communications acted as UK PR advisor, Brooke Gordon, Devin Broda and Julie Rudnick of Sard Verbinnen & Co acted as US PR advisor and Nissim Douek of Unik Public Image acted as Israel PR advisor to Permira. Tom Repke, Cecile Zwiebach, Scott Naturman, Jennifer Garnett, Lauren Shor and Laura Torre of Covington & Burling LLP, Barry Levenfeld, Ben Sandler, Ira Burshtein, Shira Livneh and Elan Loshinsky of Yigal Arnon & Co acted as legal advisors for Mexichem.
Mexichem, S.A.B. de C.V. (BMV:MEXCHEM *) completed the acquisition of 80% stake in Netafim Ltd. from funds managed by Permira Advisers Ltd., Kibbutz Magal and Kibbutz Hatzerim on February 7, 2018. The acquisition was completed after all the governmental authorizations and all the precedent conditions required by the share purchase agreement have been obtained and completed.
Orbia Advance Corporation SAB de CV, formerly Mexichem SAB de CV, is a Mexico-based company engaged in the industrial sector. The Companyâs activities are divided into five business groups: Precision Agriculture, Building & Infrastructure, Fluor, Data Communication and Polymer Solutions. The Precision Agriculture business includes Netafim brand, which develops irrigation systems and related services, as well as offers technology for farming digitalization. The Building & Infrastructure business offers pipes for multiple building applications through Wavin brand. The Fluor business operates Koura brand, which manufactures fluorine-based materials used in such industries as healthcare, construction and transportation. The Data Communication business is responsible for production and installation of communication and power cables through Dura-Line brand. The Polymer Solutions business includes vestolit and alphagary brand names, which provides plastic resins and other compounds.
Mexichem, S.A.B. de C.V. (BMV: MEXCHEM *) completed the acquisition of 80% stake in Netafim Ltd. from funds managed by Permira Advisers Ltd., Kibbutz Magal and Kibbutz Hatzerim.