UK-based engineering major Weir Group PLC is acquiring the valves business of Karnataka-based BDK Engineering Industries Ltd. The deal is expected to be completed by early October 2010. The business had gross assets of Rs 120 crore (£16.7 million) at 31 March 2010.
BDK, a family owned business based in Hubli, manufactures valves for the oil and gas, petrochemical and power markets. The business generated sales of Rs 152 crore (£20.9 million) in the year to 31 March 2010.
Weir India currently has two main operations in Bangalore serving the minerals and power & industrial markets and currently employs 350 people. Weir India also has a significant engineering shared service capability providing engineering support to many Weir companies globally.
Weir Group, a constituent of the FTSE 250 Index, had revenues of $2.15 billion and net income of nearly $200 million in 2009.
"This acquisition further strengthens our emerging market footprint. BDK's range of valves will enhance our global customer offering and its Indian sales network will provide an additional route to market for many of our existing products," said Keith Cochrane, chief executive of Weir.
"My family has developed BDK over the last 30 years into an internationally recognised valves manufacturer. We are pleased to entrust the next stage in the growth of the business to an engineering group of Weir's global standing. We are convinced that this is an excellent outcome for customers and employees. My sons and I look forward to continuing to play our roles in ensuring a smooth transition," said BDK's founder Bharat Khimji.