Permira Funds to Sell Netafim to Mexichem for US$1.895 Billion

NEW YORK–(BUSINESS WIRE)–Permira, the global investment firm, announced today that a company
backed by the Permira funds has entered into a definitive agreement to
sell Netafim, Ltd., a global leader in smart drip and micro-irrigation
solutions for sustainable agriculture and other applications, to
Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) in an all-cash transaction for
US$1.895 billion. Mexichem will acquire 80 percent of Netafim while
Kibbutz Hatzerim, the founder, will retain the remaining 20 percent.

Since being acquired by the Permira funds in 2011, Netafim has undergone
a period of tremendous growth and transformation, which included:

• Focusing on the core irrigation business and significantly enhancing
  its capabilities to deliver complete solutions to customers;
• Expanding meaningfully into a number of new key growth markets
  including China, India and Africa;
• Investing in production processes and R&D to fuel mass adoption of
  drip irrigation, including developing innovative new products for
  precision farming;
• Building a world-class leadership team; and
• Significantly growing revenue and EBITDA.

Torsten Vogt, partner at Permira and Co-Head of Industrials, said, “The
Permira funds’ investment in Netafim fits squarely within one of our
Industrial Team’s key focus areas – the food value chain – where for
more than a decade the funds have successfully invested in businesses
which help farmers grow more with less. We leveraged this unique
experience, as well as our track record of backing high-growth
industrial businesses and our global team, to support Netafim as it
developed new technologies to revolutionize precision farming and
expanded into significant new markets to become a leading global
platform for irrigation systems.”

“Netafim is an outstanding business and we are proud to have supported
the company’s growth and its critical mission of conserving and
protecting water resources,” said Michail Zekkos, a partner at Permira.
“Over the course of our partnership with Netafim’s management, Kibbutz
Hatzerim and Kibbutz Magal, the company was transformed into a
best-in-class global leader, with an enhanced focus on innovation and
new product development, and an expanded footprint and resources. It has
been a pleasure working with the Netafim team and we wish them continued
success as part of Mexichem.”

Ran Maidan, CEO of Netafim, said, “The Permira team has been an
incredible partner over the last six years, bringing its deep industrial
expertise, international relationships and operational experience to
help support and accelerate our growth plans. We have made great strides
in revolutionizing irrigation globally for a sustainable future and look
forward to continuing to execute on our next chapter of growth as part
of Mexichem.”

The Permira funds have a long track record of successfully investing in
industrial companies around the world. Current industrial investments
include leading aftermarket manufacturer and supplier of
highly-engineered components for heating, ventilating, air conditioning
and refrigeration, DiversiTech; chemical manufacturer, CABB; and
containment solutions business, Bakercorp.

Goldman Sachs, Centerview Partners LLC and Bank of America Merrill Lynch
acted as financial advisers to the Permira funds and Netafim and
Skadden, Arps, Slate, Meagher & Flom LLP and EBN&Co acted as legal
advisers.

The transaction is expected to close during the fourth quarter of 2017,
subject to customary closing conditions, including regulatory review.

About Permira
Permira is a global investment firm that finds
and backs successful businesses with growth ambition. Founded in 1985,
the firm advises funds with a total committed capital of approximately
€32 billion (US$35 billion). The Permira funds make long-term
investments in companies with the ambition of transforming their
performance and driving sustainable growth. In the past 32 years, the
Permira funds have made over 200 private equity investments in five key
sectors: Consumer, Financial Services, Healthcare, Industrials and
Technology. Current and past industrial investments for the Permira
funds include chemical manufacturer CABB, micro-irrigation specialist
Netafim, containment solutions business Bakercorp, and leading
fulfillment solutions provider Intelligrated. Permira employs over 200
people in 14 offices across North America, Europe and Asia.

About Mexichem
Mexichem is a global leader in plastic
piping, one of the most cost-efficient PVC producer and one of the
world’s largest chemical and petrochemical companies. Mexichem
contributes to global development by delivering an extended portfolio of
products to high growth sectors such as infrastructure, housing,
Datacom, water management, among others. With operations in over 30
countries, Mexichem’s global footprint includes more than 18,000
employees, 120 plants, 2 fluorite mines, 15 R&D laboratories and 8
training academies. Mexichem has annual revenues of US$5.4 billion, it
has over 50 years of history and more than 30 years trading on the
Mexican Stock Exchange. The company is member of the Mexican Stock
Exchange Sustainability Index and the sustainability emerging markets
index FTSE4Good.

Contacts

For Permira:
Noémie de Andia, +44 (0) 207 632 1159
Global
Head of Communications
or
UK
Montfort
Communications
James Olley, +44 (0)203 514 0897
or
US
Sard
Verbinnen & Co
Brooke Gordon/Devin Broda/Julie Rudnick
+1
212-687-8080
or
Israel
Unik
Public Image
Nissim Douek, +972 3 687 4055