New Ag International - Latest News

Published 20th July 2007

John Deere to buy Plastro - The US firm will acquire Plastro's controlling shareholder Gvat Agriculture

US agricultural equipment giant John Deere is seeking to gain full control of Plastro Irrigation Systems Ltd. (TASE: PLSTR), which is currently controlled by Kibbutz Gvat through Gvat Agriculture and Business ACS Ltd.

Since the news emerged on June 10 that talks were being held, nothing new had transpired until the Globes daily newspaper, in its july 12 edition, reported that the acquisition will be transacted in two stages: Plastro's current controlling shareholder, Kibbutz Gvat, which holds the company through Gvat Agriculture and Business ACS Ltd., will acquire the public's stake at NIS 13.60 per share, giving it 100% ownership. In the second stage, John Deere will acquire Gvat Agriculture.

The offer is contingent on approval by Kibbutz Gvat's members.

Plastro was previously targeted by its rival, Netafim, which in April made an offer of NIS 11-13 for Kibbutz Gvat's stake in Plastro, similar to today's offer by John Deere.

Plastro chairman Joseph Hevron said, "Today's move represents the start of a significant expansion in Plastro's irrigation activity worldwide, and it has created an extraordinary opportunity for our workers, suppliers and partners to benefit from the fruits of the deal."