Rivulis Irrigation Ltd, a Temasek-owned drip irrigation company, has agreed to acquire the global irrigation business of India-listed Jain Irrigation Systems in a cash-and-stock deal, according to an announcement.
Based on the agreement, the publicly-listed Jain Irrigation will receive stock and cash from Rivulis to create a global irrigation and climate leader with annual revenue of over $750 million.
Temasek will become the majority shareholder of the company with a 78% stake while Jain’s international business will continue to hold over 22%.
The company will be dual headquartered in Singapore and Israel and will continue to be named Rivulis. According to the announcement, Richard Klapholz, the current Rivulis CEO, will continue to lead the company.
Jain Irrigation will also be a supplier of irrigation products made in India to Rivulis for its international markets outside of India.
“We anticipate that the merger with Rivulis will create a world-leading player ideally placed to serve its global customer base thanks to its geographic footprint, breadth of offering as well as from technological depth and expertise in micro-irrigation,” said Jain Irrigation managing director Anil Jain.
Established in 1966, Rivulis has 16 large-scale manufacturing sites located across six continents, three R&D centres, and multiple Irrigation Project Design Centres around the globe.
Its solutions target individual growers to large corporate plantations in the agriculture, horticulture, greenhouse, landscape, and mining industries.
In 2020, Temasek agreed to acquire the PE-backed Rivulis Irrigation for an undisclosed amount from FIMI Opportunity Fund and US-based Paine & Partners.
Jain Irrigation, on the other hand, is an India-headquartered multinational company with manufacturing plants in 30 locations across the globe. The company and its subsidiaries are engaged in providing solutions to the agriculture, water, and food sector for more than 34 years.
“While benefitting from significant operational economies of scale and a dedicated, diverse employee base, we will ensure that all commitments to our grower community and to our combined business partners are maintained and further strengthened,” said Rivulis CEO Richard Klapholz.
The news about the merger sent Jain Irrigation’s shares to rise more than 10% at closing on the BSE Wednesday.