TRANSFORMATIONAL IRRIGATION MERGER TO HELP FARMERS DELIVER MORE CROP PER DROP
Mumbai, April 19, 2017: Jain Irrigation Systems Limited (“JISL”) thru its multi generation Wholly Owned Subsidiary in United States of America (“USA”) agreed to acquire 80% stake in 2 US entities. Two of the United States’ largest micro-irrigation dealers - Agri-Valley Irrigation, Inc. (“AVI”) and Irrigation Design and Construction, Inc. (“IDC”), have entered into an agreement to merge ownership of their businesses into a newly formed distribution company. The new organization is an un-paralleled leader in design, construction, service, and innovative Ag Technology. This entity will provide a unique platform to help growers implement state-of-the-art irrigation technology and achieve “More Crop Per DropTM”. AVI and IDC have been long tenured stable companies with operations in United States of America.
Key Highlights: Vertical Integration Merger by Consolidation of 2 largest dealers in California with 13 locations and more than 225 employees. Emerging as one of the largest companies in Irrigation business in the USA along with Jain Irrigation, Inc. (JII). AVI and IDC combined revenue for 12 months ended December 2016 is ~USD 113Mn Major push to deploy our leading Agriculture Technology portfolio: Observant, Puresense, Gavish amongst other JISL product offerings Existing management of AVI and IDC to drive future growth This is a key strategic investment by JISL into one of the largest irrigation markets in the world. JISL already has a presence in U.S. micro irrigation market through its wholly owned subsidiary Jain Irrigation, Inc., (JII) which is headquartered in Fresno, California. California drought has now eroded with significant rains over the last few months. Therefore, now there is strong irrigation business opportunity in the next 18-24 months for the merged distribution company as well as JII.
The merger will help Jain Irrigation to forward integrate itself in the value chain and build direct relationship with growers. This fits into company’s strategy to participate in end-to-end project solutions to harness company’s unique capabilities in Integrated Irrigation project solutions.
No government or regulatory approvals are required to complete the transaction. The transaction is expected to be completed in the next few weeks. Transaction is expected to be closed in the next few weeks.
Anil Jain, CEO of Jain Irrigation Systems Ltd. said, “We are delighted to be able to invest and participate in such an industry changing and strategic partnership. The transaction gives us the capability to provide grower focused, turn-key, end-to-end project solutions, consistent with our global solutions and capabilities. With the newly formed company, we’ll be able to deliver leading agriculture technology Irrigation solutions from our recent investments. Congratulations and thanks to Mr. Larry Rompal, Mr. Michael Conrad, their families and associates.”
Larry Rompal, CEO, Agri-Valley Irrigation, Inc. said, “After 34 years of building Agri-Valley with my family and our team, I am excited to partner with another family company, Jain Irrigation, and to join with our friends at Irrigation Design & Construction to continue the tradition of providing the best irrigation systems and services to our customers. I look forward to the improvements we’ll bring to the grower together.”
Michael Conrad, President of Irrigation Design & Construction, Inc., added, “This merger will build upon the strength of our three companies and allow us to provide growers with the most comprehensive levels of service. Agri-Valley Irrigation and JISL share our philosophy of doing what is right for the customer and industry. We look forward to working together to move the irrigation in