Rivulis, a drip irrigation manufacturing company, controlled by FIMI (80%) and the Indian investment company DEL (20%), is in negotiations to acquire Eurodrip, a private equity investment company owned by Paine.
The acquisition of Eurodrip will involve the allocation of 25% of the shares of the Rivulis Paine equity fund, so that at the end of the transaction FIMI will hold a 60% stake in the merged company and DEL will hold a 15% stake.
This deal will create the second largest drip irrigation company in the world after Netafim, which is controlled by Permira and local groups. The turnover of the merged company in 2016 was 330 million dollars, while the cash flow and operating earnings (EBITDA) was 25 million dollars.
The acquisition of Eurodrip will increase the geographical coverage of Rivulis in regions where its presence is relatively weak, such as Turkey, Greece and the United States.
Rivulis (formerly John Deere Water) was acquired by FIMI for 43 million in June 2014. The acquired company is made up of the three firms bought by John Deere during the years 2006-2013 representing a total investment of 500 million dollars, including the acquisition of the drip irrigation firm Plastro, controlled by Gvat, for 120 million dollars.
