Covington Advises Mexichem on its $1.8 Billion Acquisition of Israeli Irrigation Firm

WASHINGTON—Covington is advising Mexichem, S.A.B. de C.V. on its $1.895 billion acquisition of an 80 percent stake in Netafim, Ltd., the world’s largest irrigation company, from private equity and buyout firm Permira, Kibbutz Magal and Kibbutz Hatzerim. Kibbutz Hatzerim will retain a 20 percent stake. Covington has also been assisting with the related acquisition financing. The deal is expected to close in the fourth quarter of 2017, subject to regulatory approvals and other customary closing conditions.

Mexichem is a global leader in plastic piping and one of the world’s largest chemical and petrochemical companies. Based in Tel Aviv, Israel, Netafim is a global leader in developing, manufacturing and distributing advanced drip and micro-irrigation solutions, with local presence in more than 30 countries, 17 manufacturing plants, more than 4,300 employees and sales in more than 110 countries worldwide. 

The Covington corporate team included Tom Repke, Cecile Zwiebach, Scott Naturman, Jennifer Garnett, Lauren Shor, and Laura Torre.