Orbia Sells Netafim to MAT Holding and Kibbutz Hatzerim for $1.2 Billion
Translated & summarized from NEWSru Israel by baba
Mexican conglomerate Orbia is selling its Israeli drip irrigation manufacturer Netafim to Spain's MAT Holding and Kibbutz Hatzerim for $1.2 billion. The deal, expected to close by year-end, values Netafim at $800 million after debt. Kibbutz Hatzerim will regain a 30% stake, while MAT Holding and an investment fund will acquire the remaining 70%. Netafim, the world's largest drip irrigation producer, was previously acquired by Orbia in 2017 for $1.9 billion.
The story in 6 lines · by baba
- Orbia will sell Israeli drip irrigation firm Netafim to MAT Holding and Kibbutz Hatzerim for $1.2 billion.
- Kibbutz Hatzerim will buy a 30% stake, while MAT Holding and an investment fund will acquire the remaining 70%.
- The deal values Netafim's business at $1.2 billion, with a net sale price of approximately $800 million after debt.
- MAT Holding is seeking investment from French fund Tikehau Capital to finance its share of the acquisition.
- Netafim, the world's largest drip irrigation producer, is being sold by Orbia at a valuation one-third lower than its 2017 purchase price.
- U.S. regulatory concerns had previously stalled a potential sale to Chinese buyers.
Mexican conglomerate Orbia is set to sell its Israeli drip irrigation systems manufacturer, Netafim, to Spain's MAT Holding and Kibbutz Hatzerim by the end of the year. The deal values Netafim's business at $1.2 billion, with the net sale price, after accounting for approximately $400 million in debt, estimated at around $800 million. Kibbutz Hatzerim will acquire a 10% stake for $80 million, marking a return to a significant ownership position after previously selling a 12.7% stake to Orbia in 2017 for $240 million. MAT Holding, along with an investment fund that will join its capital before the transaction, will purchase the remaining 70%.
MAT Holding, a family-owned industrial group from Barcelona founded in 1935, specializes in water solutions, irrigation, and plant protection, operating in over 140 countries. The company, which has been a distributor of Netafim products in Europe, is reportedly seeking to finance its $560 million share of the deal by attracting investment from the French fund Tikehau Capital. Following the transaction, MAT Holding and Tikehau Capital are expected to each hold approximately 35% of Netafim, with Kibbutz Hatzerim holding 30%. The Matasas family and Pau Relat will retain control and management of MAT Holding.
Orbia acquired a controlling stake in Netafim in August 2017 for $1.9 billion, meaning the current sale represents a reduction in valuation by about one-third. Orbia had hired the investment bank Evercore in October 2025 to find a buyer. Previous negotiations with Israeli fund Fortissimo failed due to an inability to secure funding. Chinese billionaire Wang Haoyu, along with the HOPU fund, had also been in talks to purchase Netafim for $1.4 billion, but the deal faced significant hurdles due to U.S. regulatory concerns, as Netafim's annual sales in the U.S. amount to roughly $250 million, or a quarter of its revenue.
Netafim is recognized as the world's largest producer of drip irrigation systems, with annual revenues of approximately $1.2 billion and EBITDA of about $145 million. Under the leadership of Gabi Miodownik, the company operates in 110 countries through 33 subsidiaries, managing 19 production facilities and two processing plants, and employing around 5,000 people.