Jain Irrigation purchases Majority Interest in Cascade Specialties Inc, USA

Jain Irrigation Systems Ltd has announced that the Company, through its subsidiary in USA, has entered into an agreement to purchase the majority interest of Cascade Specialties, Inc.

Cascade Specialties, Inc. is an onion dehydrator based in Boardman, Oregon, USA, specializing in natural low bacteria onion products and organic dehydrated onion.

"We are very pleased to be involved with Cascade Specialties," said Anil Jain, Managing Director of the Company, "Cascade’s commitment to produce high quality products coupled with its excellent reputation for customer service is exactly the approach we take to the marketplace with all of our other businesses," he stated.

With this acquisition, the Company becomes the third largest dehydrated onion producer in the world with total combined capacity in excess of 25000 MTS. The Company, earlier this year had also made two onion related acquisitions in India. This new capacity along with Cascade capacity at full utilization is expected to generate revenue in excess of US$ 50 M by FY 2009 as against US$ 10 M in FY 2006. This is in line with the Company strategy to be among the top 5 Companies globally in the lines of businesses it operates.

No major changes are planted regarding personnel and the management leadership of the business. The transaction is expected to close before the end of December 2006.

The Company is a diversified entity and has been operating in the growth oriented businesses of Micro Irrigation Systems, plastic pipes, plastic sheets and food processing over the last 25 years. With the addition of this new acquisition, the financial year 2006-07 is going to be a year of significant growth for the food division of the Company.

It is a publicly held Company traded on the Mumbai, Luxemburg and the National Stock Exchange of India.

Source : Equity Bulls

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