Tyco International Ltd. announced today that it has signed an agreement to acquire a 75% equity stake in privately-held KEF Holdings Ltd. for approximately $300 million in cash.
Based in the United Arab Emirates, KEF is a fully integrated valve manufacturer and one of the world's leading providers of steel castings to the oil and gas, chemical, mining and power industries.
KEF has 900 employees with revenue expected to be approximately $140 million in the 2011 calendar year. The business is 55% owned by Kottikollon who will retain a 25% equity stake in KEF following the close of the transaction. Dubai International Capital (DIC) holds the remaining 45% of KEF and will sell its interest in the business as part of this transaction.
The transaction is expected to close in early summer, subject to customary closing conditions including regulatory approvals.