Netafim

{{Infobox company

| name = Netafim

| image = Netafim_logo.jpg

| type = Private

| location = Israel

| industry = Drip and Micro-irrigation Technologies

| num_employees = over 5,000

| revenue = {{profit}} US$ 1.063 billion (2019)

| homepage = {{url|https://www.netafim.com/en/}}

| foundation = {{start date and age|1965}}

| key_people = Gaby Miodownik
{{small|(President and CEO)}}

}}

Netafim is a manufacturer of irrigation equipment owned by Orbia Group. The company produces drippers, dripperlines, sprinklers and micro-emitters. Netafim also manufactures and distributes crop management technologies, including monitoring and control systems, dosing systems, and crop management software, as well as a variety of services, including managed irrigation, agronomical advisory and operation and maintenance. As of 2012, Netafim was the global leader on the fast expanding market of drip- and micro-irrigation.[https://www.nationalgeographic.org Drip Irrigation Expanding Worldwide], National Geographic, 25 June 2012, accessed 1 August 2019 In it was the overall largest provider of drip irrigation systems, with a global market share of 30%.Tova Cohen, [https://www.reuters.com/article/mexichem-netafim/israeli-irrigation-firm-netafim-sees-50-pct-earnings-rise-by-2020-idUSL8N1R32V3 Israeli irrigation firm Netafim sees 50 pct earnings rise by 2020], Reuters.com, 21 March 2018, accessed 1 August 2019

History

Image:Button dripper.JPG

In 2020, Netafim held an over-30% share of the global drip irrigation market.{{cite web |url= https://agfundernews.com/netafim-500-million-debt-financing-round.html |title= Netafim, $500 million in Debt Financing Round |publisher= AG Funder News |access-date= 10 March 2017 |date= 19 March 2015 }} The company recorded revenues of over $1.063 billion in 2019.{{cite web|author= | title= Orbia Announces Fourth Quarter and Full Year Financial Results for 2019 |url=https://www.businesswire.com/news/home/20200226006050/en/Orbia-Announces-Fourth-Quarter-and-Full-Year-Financial-Results-for-2019 |website=businesswire |date= 26 February 2020}}

Netafim is headed by President & CEO Gaby Miodownik, and jointly owned by Orbia (80%) and Kibbutz Hatzerim (20%),{{Cite web |url= https://www.ft.com/content/1ebc191c-7b77-11e7-9108-edda0bcbc928 |title= Mexichem to buy Israeli irrigation specialist Netafim |last= Reed |first= John |date= August 8, 2017 |website= Financial Times |access-date=}} following extensive bidding by half a dozen interested parties, including U.S. industrial technologies company Fortive Corp (FTV.N), Singapore's Temasek Holdings [TEM.UL], U.S. tools maker Stanley Black & Decker (SWK.N), Chinese investment fund Primavera and Chinese pipe maker Ningxia Qinglong (002457.SZ).{{Cite web |url= https://www.reuters.com/article/us-netafim-sale-privateequity/israel-irrigation-firm-netafim-draws-interest-from-6-bidders-report-idUSKBN1951A6 |title= Israel irrigation firm Netafim draws interest from 6 bidders: report |last= |first= |date= June 14, 2017 |website= Reuters |access-date=}}

Timeline

1960–1965 – Water engineer and inventor Simcha Blass carries out tests on the world's first dripper device.
1965 – Kibbutz Hatzerim signs agreement with Blass to establish Netafim
1966 – Introduces world's first commercial dripper
1978 – Introduces world's first pressure compensated (PC) dripper
1981 – Opens first subsidiary outside of Israel
1998 – Merges into single corporation
2007 – Introduces world's first low-flow dripper
2011 – Permira funds acquires controlling interest for €800mPermira buys 61 pct of Israel's Netafim,

[https://www.reuters.com/article/netafim-permira-idUSLDE75B02R20110612 reuters]

2013 – Named 2013 Stockholm Industry Water Award (SIWI) LaureateStockholm Industry Water Award. [http://siwi.org/prizes/stockholmindustrywateraward/winners/2013-2/ "SIWI"]. Netafim, a pioneer and leading provider of drip and micro-irrigation technology worldwide, has been named the 2013 Stockholm Industry Water Award laureate.
2020 – Netafim acquires Dutch turnkey greenhouse projects provider Gakon, establishing Gakon Netafim{{Cite web |title=Netafim to acquire Dutch greenhouse company Gakon |url=https://www.foodprocessing-technology.com/news/netafim-to-acquire-dutch-greenhouse-company-gakon/ |access-date=2023-01-21 |website=www.foodprocessing-technology.com}}

On August 7, 2017, Mexichem SA Orbia Group acquired Netafim from Permira Holdings Ltd. for $1.5 billion.{{cite news |last1=Lombardo |first1=Cara |last2=Harrup |first2=Anthony |date=August 7, 2017 |title=Mexichem to Buy Netafim from Permira Funds |url=https://www.wsj.com/articles/mexichem-to-buy-netafim-from-permira-funds-1502107497?tesla=y | work=The Wall Street Journal |location=New York City, New York, United States |access-date=August 10, 2017}}{{cite news |last=Reed |first=John |date= August 7, 2017|title=Mexichem to buy Israeli irrigation specialist Netafim |url=https://www.ft.com/content/1ebc191c-7b77-11e7-9108-edda0bcbc928 | work=Financial Times |location=United Kingdom |access-date=August 10, 2017}}{{Cite web|url=https://thejewishvoice.com/|title=Home|website=The Jewish Voice}}{{Cite web|url=https://www.reuters.com/article/us-mexichem-netafim-idUSKBN1AN0GP|title=Mexichem to take over Israeli irrigation firm Netafim in $1.5 billion deal|author=Reuters Staff|date=August 7, 2017|via=www.reuters.com}}

Ownership

Image:Netafim offices at hatzerim.JPG]]

In 1973, Netafim brought in its first partner, Kibbutz Magal, based in the Sharon region, and then added a second partner, Kibbutz Yiftach, based in the Upper Galilee region, in 1978. Netafim Hatzerim, Magal and Yiftach merged to create Netafim (ACS) Ltd in 1998. In 2006, Markstone Capital Partners Group and Tene Investment Funds acquired a share of Netafim. In 2011, the European private equity fund Permira acquired a majority (61%) stake in Netafim, with Kibbutz Hatzerim holding 33% and Kibbutz Magal holding 6%. In 2017, these owners sold 80% of Netafim to Mexichem, with Kibbutz Hatzerim retaining 20%.{{Cite web|url=https://www.permira.com/news-views/news/permira-funds-to-sell-netafim-to-mexichem-for-us-1895-billion/|title=Permira Funds to Sell Netafim to Mexichem for US$1.895 billion | Permira}}

Products

Netafim produces drip irrigation systems and other water technologies intended to increase yields and improve crop production while preserving quality and quantity of water and soil fertility. The company products are designed to provide solutions in the areas of efficient irrigation, control and agronomy for a range of field crops, orchards and vineyards grown under varied topographic and climatic conditions throughout the world. At present Netafim is developing ecological solutions for producing fuel from alternative sources. Concurrently, Netafim is launching a low pressure irrigation system that offers a solution for areas where water pressure and/or electrical infrastructure do not permit using high pressure systems. This development will facilitate introduction of the drip irrigation systems into additional agricultural areas.

Global presence

In 1981, the company opened NII, its first international subsidiary, in the US. Today Netafim maintains 33 subsidiaries{{Cite news|url=https://en.globes.co.il/en/article-netafim-buys-central-american-irrigation-co-rym-1001154276|title=Netafim buys Central American irrigation co RyM|date=September 25, 2016|newspaper=Globes}}

and 17 manufacturing plants worldwide, and employs over 5,000 workers.

In January 2014, it was announced on Bloomberg that Netafim had won a $62 million water project contract to build an automated water pipeline network in the southern state of Karnataka, India.{{cite web |url= https://www.bloomberg.com/news/articles/2014-01-23/netafim-to-build-largest-india-s-drip-irrigation-project |title= Netafim to Build Largest India's Drip-Irrigation Project |publisher= Bloomberg |author= Archana Chaudhary |date=23 January 2014 |accessdate= 10 March 2017 }}

Since then, Netafim has won additional 7 community irrigation projects in India covering in total 106,000 hectares and 97,000 farmers.{{cite web |url= https://www.timesofisrael.com/netafim-gets-85m-irrigation-deal-to-help-indian-farmers-grow-onions-beans|publisher= timesofisrael|title= Netafim gets $85m irrigation deal to help Indian farmers grow onions, beans |author= SHOSHANNA SOLOMON |date=10 August 2020 }}

In March 2016, it was announced in Globes that Netafim had won a 200 million project in Ethiopia to provide an end-to-end irrigation solution for a plantation by the Ethiopian government sugar company.{{cite web |url= https://en.globes.co.il/en/article-hapoalim-leads-200m-finance-for-netafim-project-in-ethiopia-1001108162|publisher= Globes|title= Hapoalim leads $200m finance for Netafim project in Ethiopia |author= | date=6 March 2016}}

In March 2019, Netafim won a $60 million project in Rwanda to develop an agribusiness hub.{{cite web |url= https://www.newtimes.co.rw/news/rwanda-israeli-firm-agribusiness|publisher= The new Times|title= Rwanda, Israeli firm in Rwf60bn deal to develop agribusiness hub in Gabiro |author= Emmanuel Ntirenganya

|date=4 March 2019 }}

Drip irrigation & sustainability

Netafim is involved in several global sustainability initiatives. The company is a member of the UN CEO Water Mandate and UN Global Compact (UNGC), and was named 2013 Stockholm Industry Water Award Laureate for its contribution to sustainable water management. According to company sources, the use of drip irrigation for rice and tomatoes cuts down on greenhouse gases and nitrous oxide associated with algae blooms.{{Cite news|url=https://www.haaretz.com/science-and-health/how-israel-can-help-a-thirsty-world-1.5392651|title=The secret of Israel's water miracle and how it can help a thirsty world|newspaper=Haaretz|date=4 July 2017 |last1=Schuster |first1=Ruth }}