Israel's Netafim, one of the world's leading agro-technical and irrigation companies, has taken a 50 per cent stake in the South African Vegtech Greenhouse company.
The acquisition, according to Mr Erez Meltzer, Netafim CEO, "is part of our new strategy to diversify our agri-business activities throughout the world".
Vegtech's turnover in 2005 is estimated at about $10 million, and the company is considered to be South Africa's leading greenhouse developer and manufacturer of modern greenhouses.
Meltzer said that entering the greenhouse business will serve as a major growth engine of Netafim, in view of the fact that crop cultivation in greenhouses is becoming a dominant factor in modern agriculture, "using sophisticated equipment for obtaining high yields of quality produce, using less water and less chemicals.
“Our purchase is an important strategic phase in that it makes Netafim one of the world's leading greenhouse producer," he said, adding that Netafim is currently negotiating the purchase of other greenhouse manufacturers and agro-technical companies in other parts of the world.
The Israeli-based company has recently completed the construction of greenhouses for the South African "Gold Field" firm which cultivates flowers for export.
Netafim is active in irrigation projects in 112 countries registering sales revenues of over $300 million. It has 32 subsidiaries and 12 production facilities throughout the world.
