Lindsay to acquire Brazil's Setorial, adding hose reels to its irrigation lineup
What's the deal? Lindsay CorporationDealroom has a profile for this one. Try Dealroom → (NYSE: LNN) has agreed to acquire Setorial Irrigação, a Brazilian maker of hose reel irrigation systems. Terms were not disclosed, and the deal is expected to close in the coming months, subject to customary conditions.
Who is Setorial? Based in Limeira, São Paulo, Setorial has roughly 30 years in the Brazilian market. It makes hose reel systems, sprinklers, motor pumps, and water conveyance equipment for customers ranging from large sugar and ethanol mills to family farms.
What changes for customers? Little, at least initially. Setorial keeps its brand, its team, and its Limeira plant, with founder Diomedes Pellegrini Tamani staying on to lead the business. Existing customers and representatives continue to receive products, parts, and support.
The strategic rationale: Hose reels complement Lindsay's Zimmatic center pivots, which irrigate large, fixed areas. Mobile hose reels cover irregular, temporary, or smaller fields, and the two can operate side by side on the same farm.
Setorial's line runs from units serving about 25 acres to models irrigating nearly 200 acres. The equipment is used in crops including sugarcane, where hose reels can apply vinasse, a nutrient-rich ethanol by-product.
Why Brazil? Lindsay has operated in the country since 2002 and is targeting its growing irrigation market. The company already sells French-made Perrot hose reels in Europe; Setorial adds products built in Brazil for local crops, soil, and terrain.
In their words: "Hose reels are a natural complement to our Zimmatic center pivots," said Randy Wood, president and chief executive officer of Lindsay. Pellegrini Tamani said joining Lindsay "gives us the resources to grow while keeping our brand, our team and our plant in Limeira."
The signal: The deal reflects Lindsay's push to broaden its mechanised irrigation portfolio through regional acquisitions, deepening its footprint in one of the world's major agricultural markets.
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Image credit: USDAgov
