Agribusiness Ruralco Holdings has agreed to buy a leading water management business to expand its presence in the increasingly important sector.
Ruralco has offered $57.4 million to takeover Total Eden Holdings from Anchorage Capital Partners.
"It is clear that water scarcity and security will be key issues over the coming years and efficient infrastructure and management of this resource will be key to our customers' prosperity," managing director John Maher said.
"The investment in Total Eden is an important step in helping to mitigate the seasonal risks of Ruralco's operations."
Total Eden sells, designs, constructs and operates irrigation systems for the agricultural sector.
Ruralco already operates four water businesses, providing irrigation products and services.
To fund the acquisition, Ruralco will offer current shareholders new shares in an entitlement offer that could raise about $43.8 million.
The balance of the purchase price for the acquisition will be funded through an increase in existing debt facilities.
Ruralco shares are in a trading halt, and last traded at $3.29.
