Permira Buys Majority Stake in Netafim

Permira has bought a 61% stake in drip irrigation company Netafim Ltd., Reuters reported. The firm bought the stake from Kibbutz Yiftah, Kibbutz Magal, Tene Investments and Markstone Capital. The deal valued Netafim at $900 million, Reuters said, citing a report in the Globes news website.

(Reuters) – Private equity firm Permira bought 61 percent of drip irrigation company Netafim Ltd from Kibbutz Yiftah, Kibbutz Magal, Tene Investments and Markstone Capital at a company value of $900 million, the Globes news website said on Sunday.

Kibbutz Hatzerim owns the rest of Netafim and has first refusal rights on the purchase of shares. The Calcalist financial newspaper said Hatzerim had 90 days to submit its own offer.

A spokesman for Netafim declined to comment on the report.

The price tag reflects a price per share of $57, 2 percent less than Netafim’s original asking price, Globes said.

Markstone paid $55 million for its 20 percent stake in Netafim five years ago, the website said.

Kibbutz Yiftah owns 8 percent of Netafim, Kibbutz Magal owns 23 percent, and Tene owns 10 percent.

Netafim has more than 2,000 employees at 13 plants in 11 countries, including four plants in Israel.

Permira is also interested in acquiring Clal Insurance Enterprises Holdings from IDB Holding Corp .

(Reporting by Tova Cohen; Editing by Alex Richardson)