Jain Irrigation Systems Limited (JISL) said on Thursday announced that it has completed the merger of its international irrigation business with Rivulis Pte Ltd., a part of Temasek Group, to create a global irrigation and climate major.
The merged entity will be an irrigation and climate leader – being 2nd largest in the world with $ 750 million in revenues, said Jain Irrigation in its regulatory filing. The corporate brand of the combined company will be “Rivulis, in alliance with Jain International, said Jain Irrigation Systems.
The deal will also considerably reduce the company’s debt, according to a regulatory filing.
“All the regulatory approvals related to the merger of multiple overseas subsidiaries of JITBV have been received by both entities. The condition precedent required by Share Purchase Agreement entered into by Rivulis Pte. Ltd & Jain International Trading B.V, have been satisfied. Jain (Israel) B.V. (step-down subsidiary of JITBV) shall hold a strategic minority stake of ~18.7% in Rivulis Pte. Ltd post merger,” the filing noted.
“This strategic alliance with Rivulis and partnership with Temasek has created a global leader in micro irrigation, with a strong geographic footprint and a comprehensive range of offerings. The MergeCo will lead the mass adoption of modern irrigation solutions and digital farming by growers and business partners globally through its focus on accessibility, innovation, and sustainability. We are now better equipped than ever to provide sustainable solutions to the critical challenges facing our planet, including food security and climate change,” said Anil Jain, Managing Director of Jain Irrigation.
The merger is expected to reduce the consolidated net debt of Jain Irrigation by 44 percent, i.e. ₹2,800 crore. By December 31, 2022, the company’s debt was ₹6,415 crore, and post-transaction debt would be down to ₹3,615 crore, according to the filing.