Mexichem Secures Top Spot in Smart Irrigation
On 7 August 2017, Mexichem, S.A.B. de C.V. announced the acquisition of Israel-based Netafim for US$1.86 billion, or an estimated EBITDA multiple of 14.1x. The transaction, which closed in Q4 2017, gives Mexichem 80% of the company’s shares.
In 2016, Mexichem’s total revenues topped US$5.3 billion, while Netafim reported revenues of US$855 million. The global market for advanced irrigation solutions are consolidated largely among five key players with combined revenues for irrigation totaling more than US$2.3 billion.