Mexican PVC and specialty chemicals maker Mexichem SAB de CV has acquired Argentine irrigation equipment manufacturer Dripsa srl. The deal was done through a newly created subsidiary called Mexichem Soluciones Agricolas.
In a new release, Mexichem said the Dripsa operation is ``the first in a series of acquisitions'' that the new subsidiary will complete in the first half of 2008.
The unit was created by separating the agricultural activities of Amanco Brasil Ltda. of Sao Paulo, Brazil, which Mexichem bought in 2007, from the other Amanco operations.
With offices in Buenos Aires, Argentina, Dripsa had sales of $4 million in 2007, Mexichem said. Dripsa designs and installs irrigation equipment. Its products include drip hoses and filters. Established 17 years ago, it claims 30 percent of the local irrigation market, according to Mexichem.
``Through this new subsidiary, Mexichem will [serve] the fields of biofuel and food production across Latin America,'' the release said. ``The market share gained by Mexichem Soluciones Agricolas [in Argentina] establishes it as No. 1 in the Argentine and Latin American markets.''
In January, Mexichem acquired 70 percent of Brazilian pipe maker DVG Industria e Comercio de Plasticos Ltda. (Plastubo), also through Amanco.
Enrique Ortega, Mexichem's investor relations manager, has said Mexichem plans to invest $1 billion dollars in Latin American acquisitions over five years.