Mexichem’s $1.895 Billion Acquisition of Netafim, Ltd.

Goldman Sachs, Centerview Partners LLC and Bank of America Merrill Lynch acted as financial advisers to the Permira funds and Netafim and Skadden, Arps, Slate, Meagher & Flom LLP and EBN&Co acted as legal advisers.

Permira, the global investment firm, announced today that a company backed by the Permira funds has entered into a definitive agreement to sell Netafim, Ltd., a global leader in smart drip and micro-irrigation solutions for sustainable agriculture and other applications, to Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) in an all-cash transaction for US$1.895 billion. Mexichem will acquire 80 percent of Netafim while Kibbutz Hatzerim, the founder, will retain the remaining 20 percent.

Mexichem is a global leader in plastic piping, one of the most cost-efficient PVC producer and one of the world’s largest chemical and petrochemical companies. Mexichem contributes to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, Datacom, water management, among others. With operations in over 30 countries, Mexichem’s global footprint includes more than 18,000 employees, 120 plants, 2 fluorite mines, 15 R&D laboratories and 8 training academies. Mexichem has annual revenues of US$5.4 billion, it has over 50 years of history and more than 30 years trading on the Mexican Stock Exchange. The company is member of the Mexican Stock Exchange Sustainability Index and the sustainability emerging markets index FTSE4Good.

Permira is a global investment firm that finds and backs successful businesses with growth ambition. Founded in 1985, the firm advises funds with a total committed capital of approximately €32 billion (US$35 billion).

Skadden is advising Permira with a team including M&A partners Allison Schneirov (Picture) and Alexandra McCormack, and associates Christopher Barlow and Brett Fleisher; Corporate Finance partners Laura Kaufmann Belkhayat and Gregg Noel (Palo Alto); Executive Compensation and Benefits partner Regina Olshan; Tax partner Gavin White; EU/International Competition partner Frederic Depoortere (Brussels) and Antitrust and Competition partner Maria Raptis; Intellectual Property and Technology partner Resa Schlossberg; and Derivatives and Corporate Finance partner Yossi Vebman.

 

Involved fees earner: Allison Schneirov – Skadden Arps Slate Meager & Flom; Alexandra McCormack – Skadden Arps Slate Meager & Flom; Christopher Barlow – Skadden Arps Slate Meager & Flom; Brett Fleisher – Skadden Arps Slate Meager & Flom; Laura Kaufmann Belkhayat – Skadden Arps Slate Meager & Flom; Gregg Noel – Skadden Arps Slate Meager & Flom; Regina Olshan – Skadden Arps Slate Meager & Flom; Gavin White – Skadden Arps Slate Meager & Flom; Frederic Depoortere – Skadden Arps Slate Meager & Flom; Maria Raptis – Skadden Arps Slate Meager & Flom; Resa Schlossberg – Skadden Arps Slate Meager & Flom; Yossi Vebman – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: Permira; Permira;