ESPOO, Finland, April 4, 2018 (Press Release) -Metso has signed an agreement to acquire the valve automation division of the India-based valve technology company Rotex Manufacturers and Engineers Pvt. Ltd (RMEPL). The company has a market-leading position in India in the actuator business and an advanced offering of switches, process valves, and valve automation products and solutions.
The acquired division's sales in the last fiscal year ending March 31, 2018, were approx. INR 1,550 million (EUR 19 million) and it employs approximately 275 people. It has two manufacturing facilities in the Mumbai area and sales offices in Mumbai, Vadodara, Kolkata and Pune.
The acquisition will complement Metso's actuation and valve automation offering and enable a full range of actuators for all major valve markets and a broader offering of limit switches for mid-market applications. It also introduces new products to Metso's process-valve portfolio for the oil and gas, pulp and paper, mining, water treatment and other process industries.
"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," says John Quinlivan, President, Valves business area, Metso. "In addition, the acquisition strengthens our capacities and our presence in the important Indian market."
"We are confident that RMEPL's capabilities and technological solutions will align perfectly with Metso's offering and global valve network. This acquisition will benefit our customers and employees who have been the most important asset of the Rotex Group," says Amit Shah, Managing Director, RMEPL.
Closing of the acquisition is estimated to occur in July 2018 subject to satisfaction of customary closing conditions. The parties have agreed to not disclose the value of the transaction.
About Rotex Manufacturers and Engineers
Rotex Manufacturers and Engineers is part of the privately-owned Rotex Group. It produces actuators, limit switches, valve automation components and valves. Its customers include major original equipment manufacturers (OEMs) of valves, engineering, procurement and construction (EPC) companies, and mainly India-based major end customers in the oil and gas and power industries. Rotex Group will continue to retain full ownership in other businesses, including solenoid valves, positioners, electro-hydraulic controls for actuators, and its German subsidiary, Magwen valves.
Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 2.7 billion in 2017. Metso employs over 12,000 people in more than 50 countries.