The Hindu Business Line : Jain Irrigation arm buys US firm for $6 m

Strategic fit
Chapin Watermatics will enhance Jain Irrigation's ability to participate in turnkey projects in developing world markets.
Jain Irrigation marketing subsidiaries in US, Europe, Africa will provide additional marketing and logistic support to Chapin.

Mumbai , May 3

Jain Irrigation Systems Ltd has announced that its US arm has acquired 100 per cent shareholding in Chapin Watermatics for $6 million.

Jain (Americas) Inc, Ohio, USA, has acquired 100 per cent shareholding control of Chapin Watermatics at around $6 million in cash and debt with deferred payment terms for part consideration.

JISL said it would use its FCCB funds for the acquisition.

The company had raised $60 million through its FCCB issue.

Chapin profile

Chapin Watermatics is involved in the complete drip irrigation system, including PVC and PE pipes, PVC and 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. Its multi-product and diversified skill profile enables it to bid for global agricultural projects in developing countries.

Marketing support

"Marketing subsidiaries of Jain Irrigation in the US, Europe and Africa and their warehousing facilities will provide additional marketing and logistic support to Chapin Watermatics," JISL said in a statement to the stock exchanges.

"The acquisition will significantly enhance JISL's ability to participate in turnkey projects in developing world markets while providing a strategic brand fit in matured markets of the US and Europe.

"With this acquisition the company would have the ability to make the complete product range suitable for all types of crops in various for small as well as large farm holdings across the world," JISL said.

According to the company, irrigation markets worldwide are witnessing huge growth due to growing problem of water scarcity.

"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,'' JISL said quoting its Managing Director, Mr Anil Jain.

Chapin Watermatics is a diversified company with more than 3,000 employees and sales in excess of $200 million.

Shares of JISL moved up by Rs 4.70 to Rs 277.85 in Wednesday's trade on the BSE.

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