Metso to acquire the valve automation division of India based Rotex Manufacturers and Engineers Pvt. Ltd to expand its global valves business
April 4, 2018, 1:00 p.m. EEST – 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.