A statement released by Rivulis did not provide further details about the deal.
The report added that Temasek will shell out about $365 million for the acquisition. The rest of the 15 per cent in Rivulis will continue to be held by Dhanna Engineering of India.
Headquartered in Israel, Rivulis provides micro-irrigation solutions and services to help growers achieve higher yields. It has more than 2,000 employees in 16 factories across 14 countries.
Its solutions target individual growers to large corporate plantations in the agriculture, horticulture, greenhouse, landscape, and mining industries.
“Micro-irrigation is a transformative technology, which offers the only viable solution to water scarcity and to the resulting global food constraints,” said Rivulis CEO Richard Klapholz.
The company expects the acquisition, which is still subject to government approval, to occur during the fourth quarter of this year.
Temasek’s investment is a major milestone for Rivulis, according to its outgoing chairman Gillon Beck, who is also a senior partner at FIMI Opportunity Funds, Israel’s largest PE fund.
“This team has enabled the company to build a world recognised brand, achieve rapid growth, and expand to new geographies while innovating new breakthrough technologies. We are excited for the company’s next chapter,” Beck said.
The acquisition bodes well with Temasek’s investment direction focused on structural trends such as longer lifespans, rising affluence, and sustainable living, the statement adds.
In 2017, Temasek also joined a bid to acquire PE firm Permira’s 61.3 per cent stake in Israeli irrigation firm Netafim but the lost the bidding game to Mexico-based pipes and chemicals company Mexichem, which acquired the firm for $1.5 billion.
Last week, Temasek emerged as the cornerstone investor of Emerald Technology’s $100-million water impact fund, which will invest in early- to expansion-stage companies globally for water sector innovation and adoption.