The Permira fund, which is selling its 61.35% stake in the Israeli drip irrigation pioneer, has made a 100% return.
The Permira fund is cashing in on irrigation equipment company Netafim. Permira is selling its 61.35% stake in the company; Kibbutz Magal is reportedly selling its 6% holding, while Kibbutz Hatzerim in the Negev, where Netafim was founded in 1965, is reportedly selling a 12.7% stake out of its 32.7% total holding, and will remain with a minority holding of 20%. The consideration is $1.5 billion, giving Netafim a valuation of $1.9 billion. The buyer is Mexican company Mexichem. Netafim pioneered drip and micro-irrigation, and is a world leader in the field.
Netafim, managed by CE Ran Maidan, has sixteen production plants, three of them in Israel. It is active in 110 countries and employs about 4,000 people in Israel and around the world. Permira bought its stake in Netafim in late 2011 at a valuation of $850 million, meaning that the value of its investment has doubled within less than six years.