Tyco to Buy Steel Valve Manufacturer in UAE

Tyco International Ltd., whose operating divisions produce various industrial products, including castings, agreed to buy a 75% equity stake in KEF Holdings Ltd. for approximately $300 million in cash. KEF is a fully integrated valve manufacturer headquartered in the United Arab Emirates, producing steel castings to the oil and gas, chemical, mining and power industries. KEF has 900 employees with revenue expected to be approximately $140 million this year. The transaction awaits regulatory approvals, but Tyco expects to complete it in early summer. Faizal Kottikollon, KEF's founder and CEO, will retain his 25% holding and his executive position. He said the purchase by Tyco will align KEF with a global leader in valve manufacturing, and bring product and operational expertise that will improve his organization’s product performance and customer service. "This acquisition is a further step in our strategy to strengthen our leadership position in our core security, fire and flow control platforms," stated Tyco chairman and CEO Ed Breen. "The transaction provides our flow control business with a strategic manufacturing presence in the Middle East region while broadening our product portfolio for customers around the world." KEF will be managed by Tyco Flow Control, a business segment that produces valves and controls, water and environmental systems, and thermal control products for energy, power, water, mining, chemical, food and beverage, and construction applications. "This acquisition will enable us to better serve customers doing business across the region by drawing on the considerable strengths and deep experience of the KEF team in the areas of design, manufacturing and service," stated Tyco Flow Control president Patrick Decker. "This move significantly enhances our footprint in the region and provides us with a platform for our future growth and expansion."