Japan-based KITZ Corporation has signed an agreement to buy 100 per cent stake in the Indian valve manufacturer Micro Pneumatics Pvt Ltd to expand its operations overseas, according to a statement.
Singapore-based Kitz Corporation of Asia Pacific Pte Ltd, a subsidiary of Kitz Corp, will buy 99 per cent equity stake in the firm, while remaining 1 per cent will be picked by Kitz Corp only.
“Kitz Corporation of Asia Pacific…entered into a share purchase agreement on November 15, 2013 to purchase 99 per cent share of Micro Pneumatics, Indian valve manufacturer, from the founders who are existing shareholders…KITZ Corporation will purchase the remaining 1 per cent share of Micro,” Kitz Corp said in the statement.
The deal, transferring of the entire sales share, is expected to close by the end of February 2014.
Micro, with development, production and sales base of industrial and ball valves in India, has capability to produce high quality products and a strong sales network in India's main markets.
The acquisition will help KITZ Corp have a production facility and a sales network in India.
“We can accelerate development of products for the Indian market with synergy of production engineering between Kitz Group and Micro. We will also be able to meet customer needs for various products by suggesting KITZ products to the sale network of Micro,” the statement added.
(Edited by Joby Puthuparampil Johnson)