Rivulis and Eurodrip Announce Merger to Create a World Leader in Micro Irrigation
Tel Aviv, Israel and Athens, Greece, 10 January 2017 - Rivulis Irrigation Ltd. of Israel and Eurodrip S.A. of Greece announced today that the two companies have entered into a definitive merger agreement in an all-share transaction, creating a global leader in micro irrigation. Transaction closing is subject to satisfaction of certain conditions including, but not limited to, regulatory approvals. The merged company will have unparalleled market coverage with 18 factories around the world and 1,800 employees across 5 continents and 30 countries. Growers around the world will benefit from an extensive product and solution offering, consisting of trusted industry brands such as T-Tape™, Ro-Drip™, Hydrogol™, D5000, Eolos™, Compact™, PC2™ and Olympos™. The merged company will be headquartered in Gvat, Israel and will be named Rivulis Irrigation, Ltd. Richard Klapholz, the current CEO of Rivulis Irrigation, will lead the merged company.
All current shareholders of the two companies – FIMI Opportunity Funds, Israel's leading private equity fund (FIMI), U.S. based Paine & Partners, LLC (Paine & Partners) and Dhanna Engineering of India – will remain shareholders of the merged company and will remain active on the Board of Directors, ensuring continuity and providing strong support for the success of the merged company. FIMI will maintain a majority stake and Gillon Beck, the current Chairman of Rivulis Irrigation and Senior Partner at FIMI, will serve as the Chairman of the merged entity. The company will continue to support both the Rivulis and Eurodrip brands, and will remain strongly committed to its mission of providing continuous innovation, and strong service to help growers to optimize yields sustainably and economically while addressing water and land scarcity.
Richard Klapholz, Rivulis Irrigation CEO, commented on the merger: “We are thrilled to have these two leading companies join forces to better serve the growing needs of the irrigation markets around the world. While benefitting from significant operational economies of scale, we will ensure that all commitments to our distribution business partners are maintained and further strengthened. Our goal is to ensure that our business partners will continue to be successful with the products and solutions of both companies – but now with a wider offering and stronger manufacturing base. I am looking forward to working closely with the Eurodrip teams around the world and I am certain that we will all benefit from their vast experience and their continued commitment and dedication.”
Peter Berweger, Eurodrip Group CEO, added: “It has been a great honor for me to lead the Eurodrip Group over the past years and into this merger. With this transaction, we bring together two excellent micro irrigation businesses with complementary capabilities, and we are offering growers more choice and a wider product range to save water and enhance yield. The combined entity will have a truly global presence in all relevant irrigation markets, enabling strategic global growth and innovation that will benefit all stakeholders.”
David Buckeridge, Eurodrip Chairman and Partner at Paine & Partners, said: “This merger reflects our continued belief in the potential for improving agricultural productivity around the globe. It has been a sincere pleasure to see how both companies share the same commitment to leading the transformation and development of drip irrigation globally. Paine & Partners remains fully committed to the success of the merged company and is excited to partner with FIMI to support that success.”
Gillon Beck, the merged company’s chairman, summarized: “The Rivulis management team has proven its turnaround skills in an astounding manner in the last two and a half years. Strengthened by the talent of the Eurodrip management, employees and owners, the joint team can now focus on a different type of development: merging the two companies into one efficient, market oriented, innovative and profitable global entity. With the help and long-time experience of our co-owners, I am confident in the company’s success in this new phase and in its ability to assume a leadership role in the industry.”
About Rivulis Irrigation: Rivulis Irrigation is one of the leading drip and micro irrigation manufacturers worldwide. With 1,000 employees, 11 factories, operations in 25 countries, and a global distribution network of well over 1, 350 dealers and OEM partners, Rivulis Irrigation is a major player impacting the growing move of agriculture to drip irrigation. Rivulis Irrigation was established in June 2014, when FIMI acquired the former John Deere Water division from John Deere. The Fund, together with the current management of the company and its employees, succeeded in turning the company around in an exceptionally short time, effectively leveraging the 5 decade long expertise of the original founding companies (Plastro, T-Systems and Roberts Irrigation).
About Eurodrip: Eurodrip S.A., established in 1979, through its subsidiaries, manufactures and supplies integrated drip irrigation solutions for agricultural and landscaping applications. Its products include integrated drip line solutions, flat and round drippers, blank tubes and other irrigation products. Eurodrip has a market presence in over 70 countries, with operating subsidiaries in the U.S., Turkey, Greece, Egypt, Jordan, Peru, Mexico and Chile, and employs more than 700 people worldwide. In 2013, Eurodrip was acquired by Paine & Partners LLC, a value-driven private equity firm that focuses on complex investment opportunities in the fast-growing, dynamic global food and agribusiness sectors.
Eurodrip USA Celebrates 20 Years of Serving the USA and Manufacturing Quality Dripline
Madera, CA– 2016 marks the 20th year that Eurodrip USA has been in business. On April 14, 2016 Eurodrip USA hosted a ribbon cutting anniversary celebration. “Its quite amazing to be standing here celebrating 20 years for Eurodrip USA,” Trevor Thorley, CEO said in his presentation. Members of the Madera and farming communities came out to celebrate their two decades of service. Included in the guests were Madera Mayor Robert Poythress, John Anderson; representative of Senator Cannella, Madera Chamber President Debi Bray, Johnny Tacherra; Republican Candidate for California’s 16th District, and valued customers came to show their support. Employees and guests mingled while enjoying cupcakes and some of the agricultural bounty that California’s Central Valley has to offer.
From Then to Now
Starting in San Diego, CA, Eurodrip USA moved to Madera, CA in 2005 to be closer to the heart of agriculture. Eurodrip USA manufactures drip irrigation tubing and provides drip system components. “Our product serves not only California and the USA but Canada and Mexico as well. So the community of Madera is reaching out to provide product to farmers all over the country and beyond,” said Lance Goldsmith, VP of Sales and Marketing. Drip irrigation is a method that allows water to drip slowly into the soil, either below or above the surface via a network of tubing, emitters, valves, filters, and pipes. Drip maximizes water and nutrient efficiencies, helping the environment and the farmer’s bottom line.
In the Community
Eurodrip USA has grown substantially since they first put down roots in the United States in 1996. They are a strong part of Madera, employing over 100 people, giving back to the community, and helping farms be more efficient with their water use. “Eurodrip has been a great community partner over the years,” stated Madera Mayor Robert Poythress. Eurodrip USA is currently going through an expansion period, hiring on more specialists to help with the increased demand of their products. They are active members in the Madera, Fresno and Tulare County Farm Bureaus and a partner to the farmers that they serve.
Roger Johnson SDI Grower Testimonial
Roger Johnson isn’t new to farming, he and his family have been farming in the Midwest for decades. Johnson’s first experience with subsurface drip irrigation (SDI) wasn’t until 2007. In 2007 Johnson converted his first 100 acres from flood (gravity) irrigation to subsurface drip irrigation and hasn’t looked back.
TROUBLE WITH FLOOD IRRIGATION
“Gravity irrigation was always feast or famine. It could be good at one end, but not good at the other,” Johnson explains.
Equal water distribution was just one of Johnson’s troubles with flood irrigation. Another issue was the length of time it would take for the gravity fed system to apply water to the opposite end of the field about ½ mile away. It could take three weeks to irrigate just 85 acres before Johnson made the switch to drip irrigation.
Johnson’s wells were also being maxed out using flood irrigation. On one system he was pumping 800 gallons per minute for the flood irrigation system. Now with drip irrigation, the same system is set to pump at 600 gallons per minute, greatly reducing his energy and water costs.
Water isn’t the only input that Johnson has been able to reduce. He used to apply nitrogen just once in the fall or spring. Now with drip irrigation Johnson can spoonfeed his crop by applying smaller amounts of nitrogen through his drip irrigation system three times a season, precisely when the crop needs it.
Even with reductions in water and fertilizer, Johnson is still seeing a large increase in his harvest. With the gravity system he was averaging 185 bushels per acre of corn, with drip irrigation he yielded 265 bushels per acre – a 43% increase!
LEADING THE WAY
Johnson’s success and early adoption to subsurface drip irrigation has impacted other growers in his community. It was apparent to his neighbors that subsurface drip irrigation was working and worth their investment too. Since Johnson’s system was installed, he estimates that 5 or 6 other systems also popped up.
Labor and maintenance is required for a subsurface drip irrigation system but Johnson describes the maintenance as “nowhere near as labor intensive as the gravity systems were.” Johnson believes his lasting success with SDI is due to his maintenance regimen, “Keep the system clean, use good filters, and flush regularly.”
Johnson’s experience with his first 100 acres of SDI has made it a simple choice to convert the rest of his acres to drip irrigation. “SDI is different, but you’ll like it,” he says with a smile. Johnson’s amazement at drip irrigation hasn’t changed with time. “You can turn on the water and go to the other end of the field and it is running. It’s amazing!”
Johnson also attributes his success with SDI to having a great system design, installation, and support from Western Irrigation/Multi-States Irrigation, an irrigation dealer based in Garden City, Kansas. Randy Wildeman, president of Western Irrigation, prides himself on the company’s commitment to quality and their long term relationships with the growers they support. Wildeman and his team are professionals who realize that water is a precious resource and businessmen who understand that the goal of a producer is to be profitable.
Western Irrigation is an authorized Eurodrip USA Dealer.