California: 2 Irrigation Dealer Groups Merge Under Indian-Based Multi-National
Two California irrigation dealers – Agri-Valley Irrigation (AVI) and Irrigation Design and Construction (IDC) – have agreed to merge their businesses into a newly formed distribution company funded by Jain Irrigation Systems Ltd. (JIS), an Indian-based multi-national manufacturer.
“We are delighted to be able to finance and participate in such an industry changing and strategic partnership,” said Anil Jain, CEO of JIS. “The transaction gives us the capability to provide grower focused, turn-key, end-to-end project solutions, consistent with our global solutions and capabilities. With this newly formed company, we’ll be able to deliver leading Ag Tech Irrigation solutions from our recent investments.”
Larry Rompal, CEO of AVI said, “After 34 years of building Agri-Valley with my family and our team, I am excited to partner with another family company, Jain Irrigation, and to join with our friends at IDC to continue the tradition of providing the best irrigation systems and services to our customers.”
The merger “will build upon the strength of our three companies and allow us to provide growers with the most comprehensive levels of service,” said Michael Conrad, president of IDC. “AVI and Jain share our philosophy of doing what is right for the customer and industry.”
AVI and IDC will maintain their names, with day-to-day operations managed independently by the current teams. Those teams, in turn, will repor to the board of directors of a newly formed entity, Jain Distribution Holdings, Inc.
While the terms of the deal were not disclosed, AVI and IDC will have minority ownership in the new companies. The transactions are expected to close near the end of April.
AVI, founded in 1983, has since developed into a large firm supplying irrigation services to the central San Joaquin Valley ag community. It employs 125 people. The company stocks an inventory of parts at locations in Fresno, Five Points, Firebaugh, Merced, Bakersfield and Visalia.
IDC, headquartered in Patterson, California, went into business in 2004 and has grown to seven retail locations in California’s Central and Salinas Valleys and employs and has a staff of over 100.
Founded 34 years ago, JIS employs more than 10,500 people worldwide and lists revenue of $1 billion (US). Globally, it operates manufacturing plants in 30 locations. The company and its subsidiaries are heavily involved in manufacturing various types of pipes, micro irrigation systems and related products. It also offers technical and financial services and markets farm products through Jain FarmFresh.
Source: : http://www.prweb.com/releases/2017/04/prweb14228439.htm
The bulls were again winners in an exciting week for longs and producers. In last week’s report, I said the markets bias would be near unchanged to a bit lower.