A Mexican company will buy 80% of the Israeli drip irrigation tech company Netafim, which was founded in the 1960s in Kibbutz Hatzerim. The stake will be sold at $1.5 billion.

Netafim's technology

Netafim’s technology Photo Credit: PR/Channel 2 News

On Monday, the equity firm Permira announced that it is selling its stake in the drip irrigation company Netafim to Mexichem, a Mexican company, for $1.5 billion. Netafim was founded in the 1960s in Kibbutz Hatzerim, which will remain with a 20% holding in the successful business.

The deal is expected to increase the value of the company to $1.9 billion. The company doubled its worth in just six years after it was sold to the Permira fund for only $850 million in 2011.

Netafim, which is managed by Ran Maidan, develops irrigation solutions and has 16 factories, three of which are in Israel. The company operates in about 110 countries and employs approximately 4,000 workers in Israel and abroad.