Jain Irrigation acquires US firms for US$48 mn

India-headquartered Jain Irrigation Systems’s US subsidiary, Jain Irrigation Inc, has an acquired 80% stake in two US-based irrigation and distribution companies – Agri-Valley Irrigation Inc (AVI) and Irrigation Design and Construction Inc (IDC) – for US$48.5 million.

The two micro-irrigation dealers have entered into an agreement with Jain Irrigation to merge ownership of their businesses into a newly-formed distribution company. AVI and IDC have been long-tenured stable companies with operations in the US.

With combined revenue of US$113 million last year, AVI and IDC when combined, will have 13 large dealership locations throughout California. Jain Irrigation says the new entity will provide a platform to help growers implement state-of-the-art irrigation technology and achieve more crop per drop. Jain Irrigation will retain the existing management of AVI and IDC to drive future growth.

The deal, which is expected to be completed in the next few weeks, needs no government approval, said Jain Irrigation.

Anil Jain, CEO, Jain Irrigation, said the transaction gives the firm the capability to provide grower focused, turnkey, end-to-end project solutions, consistent with global solutions and capabilities.

“We’ll be able to deliver leading agriculture technology irrigation solutions from our recent investments,” he added.

The 34-year old Jain Irrigation has more than 10,500 employees worldwide and revenues of US$1 billion with manufacturing plants in 30 locations across the globe. It is engaged in providing solutions in agriculture, piping, infrastructure through manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products and renewable energy solutions.

The company says its modern irrigation systems have helped to get significant increase in crop yields, especially for more than 6 million small farmers.