Mexichem Completes the Acquisition of Netafim

TLALNEPANTLA DE BAZ, Mexico–(BUSINESS WIRE)–Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”)
announced that it has completed the acquisition of an 80% stake in
Netafim, Ltd. (“Netafim”) from a company backed by the Permira funds
after all the governmental authorizations and all the precedent
conditions required by the Share Purchase Agreement have been obtained
and completed. Netafim is a privately-held Israeli company and a leader
in precision irrigation solutions. The total enterprise value of the
transaction is US$1.895 billion. Kibbutz Hatzerim retains 20% ownership
in Netafim, which will maintain its headquarters in Israel. As
previously-disclosed, Mexichem financed the acquisition with a
combination of cash and debt.

The completion of this transaction has significantly advanced Mexichem’s
long-term strategy to position itself as a world leader in specialty
products and solutions serving high-growth markets.

“Finalizing this acquisition is a key milestone for Mexichem and one
that will provide substantial opportunities for the Company in the
periods ahead,” noted Antonio Carrillo, Mexichem’s outgoing Chief
Executive Officer.

Daniel Martínez-Valle, Mexichem’s incoming Chief Executive Officer,
continued “Netafim adds an important element to Mexichem’s strategic
profile. In addition to making us a leader in the fast-growing micro
irrigation sector, Netafim brings the R&D and technology to transform
existing products in our portfolio into smart solutions that can assist
our customers in managing their networks and operating sites. We look
forward to benefitting from Netafim’s great talent and purpose-driven
culture.”

Ran Maidan, Netafim’s President and Chief Executive Officer added, “The
integration with Mexichem creates a major step forward for Netafim. By
leveraging Mexichem’s global platform and resources, we will be able to
accelerate our growth, while providing a more comprehensive set of
solutions and services to our customers”.

Torsten Vogt, Partner and Co-Head of Industrials at Permira, said,
“Netafim is an outstanding business with a critical mission of
conserving and protecting vital water resources. We are very proud to
have accompanied the company in recent years as it developed new
technologies that revolutionized precision farming and successfully
expanded into significant new markets to become a leading global
platform for irrigation systems. We wish it continued growth and success
as part of Mexichem.”

Commenting on the completion of this transaction, Juan Pablo del Valle,
Chairman of Mexichem said, “The Netafim acquisition has enabled Mexichem
to develop a strategic presence in the dynamic field of micro
irrigation, a sector that is effectively addressing challenges related
to global food and water shortages. I have full confidence that our
respective management teams will successfully integrate our combined
offerings to provide the best solutions to the agricultural and
industrial customers we serve.”

About Netafim

Netafim is the global leader in precision irrigation for a sustainable
future. With 29 subsidiaries, 17 manufacturing plants and 4,500
employees worldwide, Netafim delivers innovative, tailor-made solutions
to millions of farmers, from smallholders to large-scale agricultural
producers, in over 110 countries. Founded in 1965, Netafim pioneered the
drip revolution, creating a paradigm shift toward precision irrigation.

Today, Netafim provides diverse precision irrigation solutions for
agriculture, greenhouses, landscaping and mining, accompanied by expert
agronomic, technical and operational support. Netafim is also leading
the way in digital farming for irrigation, integrating monitoring,
analysis and automation into one state-of-the-art system. Specializing
in end-to-end solutions from the water source to the root zone, Netafim
delivers turnkey irrigation and greenhouse projects, supported by
engineering, project management and financing services. See how
Netafim’s solutions are changing the economics of agriculture and
helping the world grow more with less at www.netafim.com.

About Kibbutz Hatzerim

Located in the Negev desert in Israel, Kibbutz Hatzerim was founded in
1946. It co-founded Netafim in 1965, and introduced drip irrigation
technology commercially to the agricultural community. One of the first
agricultural settlements to move from traditional farming to corporate
entrepreneurship, Hatzerim has supported continuous innovation in
irrigation for over 50 years. It has provided Netafim a rich legacy of
down-to-earth rural values combined with cutting-edge agronomic and
technological expertise to lead the way in drip and micro irrigation
solutions that help farmers around the world.

About Permira

It’s 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 and one of the world’s
largest chemical and petrochemical companies. It has more than 50 years
of experience. The Company contributes to global development by
delivering an extended portfolio of products to high growth sectors such
as infrastructure, housing, datacom and water management, among others.
With operations in 37 countries, 120 facilities worldwide and more than
18,000 employees, Mexichem has the rights to produce fluorspar in two
mines in Mexico, as well as 8 formation academies and 15 R&D labs.
Operations are divided into two value chains and three business units:
Ethylene Chain: Vinyl and Fluent Business and Fluor Value Chain, which
includes Fluor business group. Mexichem has annual revenues of US$5.4
billion and has been traded on the Mexican Stock Exchange for more than
30 years. The company is member of the Mexican Stock Exchange
Sustainability Index and the sustainability emerging markets index
FTSE4Good.

Forward-looking Statements

In addition to historical information, this press release contains
"forward-looking" statements that reflect management's expectations for
the future. The words “anticipate,” “believe,” “expect,” “hope,” “have
the intention of,” “might,” “plan,” “should” and similar expressions
generally indicate comments on expectations. The final results may be
materially different from current expectations due to several factors,
which include, but are not limited to, global and local changes in
politics, the economy, business, competition, market and regulatory
factors, cyclical trends in relevant sectors; as well as other factors
that are highlighted under the title “Risk Factors” on the annual report
submitted by Mexichem to the Mexican National Banking and Securities
Commission (CNBV). The forward-looking statements included herein
represent Mexichem’s views as of the date of this press release.
Mexichem undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by law.”

Mexichem has implemented a new Code of Ethics that rules its
relationships with its employees, clients, suppliers and general groups.
Mexichem’s Code of Ethics is available for consulting in the following
link: http://www.mexichem.com/Codigo_de_etica.html
Additionally, according to the terms contained in the Securities
Exchange Act No 42, Mexichem Audit Committee established a mechanism of
contact, which allows that any person that knows the unfulfilment of
operational and accounting records guidelines and lack of internal
controls of the Code of Ethics, from the Company itself or from the
subsidiaries that this controls, file a complaint which is anonymously
guaranteed. The whistleblower program is facilitated by a third party.
The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem
and contact e-mail is [email protected].
Mexichem’s Audit Committee will be notified of all complaints for
immediate investigation.

Contacts

Investor Relations:
Mexichem
Fabiola Molina del Valle,
+ (52) 55.5366.4050
[email protected]
www.mexichem.com