Finnish industrial machinery company Metso said on Wednesday it will acquire the valve automation division of Indian valve technology company Rotex Manufacturers & Engineers Pvt. Ltd for an undisclosed amount.
Rotex plans to use the proceeds from the sale for restructuring group companies and developing new products, managing director Amit Shah told VCCircle.
Privately held Rotex has a market-leading position in India in the actuator business and offers switches, process valves, and valve automation products and solutions, the two companies said in a statement.
The valve automation division’s net sales for the year ended March 2018 was Rs 159 crore (€19 million, $24 million). The division has two manufacturing units in Mumbai and employees 275 people in India.
Equipment and services company Metso is listed on the Nasdaq Helsinki in Finland and had sales of about €2.7 billion in 2017. It employs over 12,000 people in more than 50 countries.
In the past, Metso had bid for Larsen and Toubro Ltd’s valves business in India.
Besides valve automation, Rotex Group is present in solenoid valves, positioners, electro-hydraulic controls for actuators, and has a subsidiary in Germany. Its customers include major original equipment manufacturers in the oil and gas and power sectors.
“This acquisition represents an important strategic step for Metso’s valves business. It expands our offering for the current customer segments, especially outside North America, and increases our presence in attractive new industries and application areas,” John Quinlivan, president, valves business area, Metso said in a statement.
The transaction is likely to be completed in July. KPMG acted as the sole transaction adviser to Rotex.