Temasek agrees to acquire Israeli micro-irrigation firm Rivulis

Photo from Rivulis.

Singapore state-owned investment company Temasek has agreed to acquire private equity-backed Israeli drip-irrigation firm Rivulis Irrigation Ltd for an undisclosed amount.

A statement released by Rivulis did not provide further details about the deal.

An earlier report by Israeli financial site Calcalist said Temasek will acquire an 85 per cent stake in the company from PE firm FIMI Opportunity Fund and US-based Paine & Partners.

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.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.