John Deere seeking Plastro acquisition
US agricultural equipment giant wants to purchase Israeli irrigation systems maker Plastro for an undisclosed sum
US agricultural equipment giant John Deere wants to acquire full control of Plastro Irrigation Systems from Kibbutz Givat, it was announced Thursday.
Kibbutz Givat will seek to buy the public's 25 percent stake in Plastro for NIS 13.60 a share, a move that will give it 100 percent control over the company which it will then sell to John Deere.
Under the acquisition agreement, John Deere will not close down Plastro's facilities at the kibbutz but will rent them for an annual fee of $1.3 million over the next ten years. John Deere has also committed to keep the kibbutz's workforce that operates Plastro.
"We are proud and satisfied with the deal," said Plastro Chairman Yossi Hevron. "The move marks the beginning of an increase in Plastro's activities and brings an exceptional opportunity for Plastro's workers, suppliers and partners."