The Mumbai-based Jain Irrigation Systems has acquired US-based drip irrigation company, Chapin Watermatics Inc, through its subsidiary Jain Americas Inc for $6 million in cash and debt with deferred payment terms.
The company will use funds raised through a foreign currency conversion bond for the acquisition.
The acquisition would significantly enhance Jain Irrigation's ability to participate in turnkey projects in developing markets while providing a strategic brand fit in matured markets of the US and Europe.
Further, the buyout would enable Jain Irrigation to make complete product range suitable for all types of crops in various geographies for small and large farm holdings across the world. Irrigation markets worldwide are witnessing huge growth owing to ever-growing problem of water scarcity.
Marketing subsidiaries of Jain Irrigation in US, Europe and Africa and their warehousing facilities would provide additional marketing and logistic support to Chapin Watermatics.
Anil Jain, managing director, said after signing the deal in the US, "The focused marketing efforts that Jain brings to the deal will complement the products of Chapin and the acquisition will catapult Jain Irrigation and Chapin Watermatics to the forefront in growing global markets for irrigation equipment."
Jain Irrigation is the producer of drip irrigation system including PVC & PE pipes, PVC & PE fittings, polytubes, emitting pipes and fittings, emitters, spray heads and jets, filtration and fertigation equipment, and green houses. It also undertakes projects on turnkey basis for transformation of wasteland through watershed planning and development.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
