Jain Irrigation Systems Ltd (JISL) on Wednesday announced that it has agreed to acquire 80 per cent stake in two entities in the US for about $48.5 million, marking a key strategic investment into one of the largest irrigation markets in the world.
JISL will route the acquisition through its wholly owned subsidiary Jain Irrigation Inc, headquartered in Fresno, California, it said in a press statement.
The two US-based micro-irrigation dealers, Agri-Valley Irrigation Inc. (AVI) and Irrigation Design and Construction Inc. (IDC), have entered into an agreement to merge ownership of their businesses into a newly-formed distribution company, the statement said.
This new organisation will provide a platform to help growers implement irrigation technology, it added.
The merger of the companies will help JISL to forward integrate itself in the value chain and build direct relationship with growers. The transaction is expected to be completed in the next few weeks.
“The transaction gives us the capability to provide grower focused, turn-key, end-to-end project solutions, consistent with out global solutions and capabilities. With the newly formed company, we’ll be able to deliver leading agriculture technology irrigation solutions from our recent investments,” said Anil Jain, CEO of JISL.
AVI and IDC have been long tenured stable companies with operations in the US. Their combined revenue for 12 months ended December 2016 stood at $113 million.