INDUSTRY NEWS
Tyco International to Buy Valve Maker, Metalcaster KEF Holdings Tyco International Ltd., Princ-
eton, N.J., announced it has signed an agreement to acquire a 75% equity stake in KEF Holdings Ltd., Sharjah, United Arab Emirates, for approxi- mately $300 million in cash. Privately-held KEF is a fully inte-
grated valve manufacturer and a pro- vider of steel castings to the oil and gas, chemical, mining and power industries. “Tis acquisition is a further step in
our strategy to strengthen our leadership position in our core security, fire and flow control platforms,” said Tyco Chairman and Chief Executive Officer Ed Breen. “Te transaction provides our flow con- trol business with a strategic manufactur- ing presence in the Middle East region, while broadening our product portfolio for customers around the world.” KEF has 900 employees with expected revenues of approximately $140 million in the 2011 calendar
year. Te business is 55% owned by a parent company that will retain a 25% equity stake following the close of the transaction. Dubai International Capi- tal holds the remaining 45% of the company and will sell its interest in the business as part of the transaction. “Tis acquisition will enable us to better serve customers doing business across the region by drawing on the considerable strengths and deep ex- perience of the KEF team in the areas of design, manufacturing and service,” said Patrick Decker, president of Tyco Flow Control. “Tis move significantly enhances our footprint in the region and provides us with a platform for our future growth and expansion.” Te transaction is expected to close
in early summer, subject to customary closing conditions including regula- tory approvals. “Tis transaction aligns KEF with a
highly respected global leader in valve manufacturing,” said Faizal Kottikollon, KEF’s founder and chief executive of- ficer, who will remain with the com- pany in a leadership role following the transaction. “Tyco’s product knowledge, operations expertise and advanced valve technology are a natural fit with KEF’s local manufacturing and channels into the Middle East market, providing our customers an even higher level of customized choice and service.” Tyco International provides security
products and services, fire protection and detection products and services, valves and controls, and other industrial products to customers around the world. It had 2010 revenues of $17 billion and employs more than 100,000. Te company’s Tyco Flow Control business segment makes valves and controls, water and environmental systems, and thermal control solutions.
12 | MODERN CASTING April 2011
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