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Jain Irrigation acquires 50.001% stake in Naandan

Jain Irrigation Systems Limited the agriculture major announced on May 28 that it has signed definitive agreements through a wholly owned subsidiary in Netherlands to acquire 50.001% of the share capital of Naandan Irrigation Systems C.S. Ltd, Israel in all cash deal for an amount of $21.5 mn. Out of which a sum of $10.5 mn will be retained in Naandan for future growth of the Company.

Company would be controlled and managed jointly by Jain Irrigation and Kibbutz Naan on an equal basis. Jain is further committed to bring additional funding support in form of loan and/or guarantees to the tune of $7.5 mn for the bona fide growth requirements of the Company. The closing is expected to take place early next month.

NaanDan’s global network includes manufacturing companies in the USA, Spain, Mexico, Brazil, Chile and Australia and marketing subsidiaries in France and Italy. Naandan has exclusive distributors in over 50 countries and employs 550 people worldwide. Naandan has achieved a $75 mn revenue for 2006 and is a profit making company.

On the completion of the proposed transaction, NaanDan’s name will be changed to ‘NaanDan Jain Irrigation C.S. Limited’. The Company will be the platform for development of worldwide drip/sprinkler market for both partners. Both partners have agreed to provide long term guarantees for maintaining the manufacturing facilities and employment in Israel.

Jain Irrigation has pioneered drip irrigation for small farmers in India and has the major market share in India which is one of the fastest growing irrigation markets in the world. Jain Irrigation acquired Chapin Watermatics Inc., USA (Revenues 2006- approx.$10 mn), a leading manufacturer of drip tape in April 2006, and also completed acquisition of Aquarius Brands Inc., USA another irrigation equipment provider (Revenues 2006 - approx.$30 mn) recently in February 2007. With these two acquisitions Jain Irrigation had become number 2 in world in the field of drip/sprinkler irrigation. Now, Jain Irrigation is on its way to becoming the worldwide leader in terms of revenue, product range, technological edge and market reach.