Mumbai: The Siemens Division Industrial Solutions, an arm of Siemens AG of Germany, will acquire US-based Morgan Construction Co. to boost its metal technology business.

Siemens would take 100 per cent stake in Morgan Construction and both companies have agreed not to disclose the purchase price, Siemens said in a release.

The transaction is subject to the approval of the relevant authorities, it added.

Worcester, MA-based Morgan reported 2006 sales of $180 million and employed around 1,100 people in the US, China, India, the UK, and Brazil.

Founded in 1888, Morgan Construction Company is a leader in rolling mill technology and a worldwide supplier of wire rod rolling-mill equipment for the long-products industry. Morgan has designed and installed more than 450 rod, bar, and billet mills in over 40 countries worldwide.

The technology includes the patented reducing/sizing mill, which enables products to be rolled faster, with closer tolerances and at lower costs.

"With the acquisition of Morgan Construction we combine its competence in the sector of rolling mill equipment with our know-how in industrial automation," said Richard Pfeiffer, CEO Siemens VAI Metal Technologies.

"The fit between our two companies is remarkably good. Morgan Construction is the acknowledged leader in the design and manufacture of wire rod mills and Siemens Metals Technologies has a very strong bar mill group. There are true synergies between the two companies, which strengthen the position of both in the flat product rolling mill area." said Philip R Morgan, president and CEO of Morgan Construction.

Post acquisition Morgan Construction will be a group company of Siemens Industrial Solutions and Services under the responsibility of the industrial solutions business unit VAI Metals Technologies, headquartered in Linz/Austria.

Siemens VAI Metals Technologies is one of the world's leading engineering and plant-building companies for the iron and steel industry as well as for the flat-rolling sector of the aluminum industry and for open-cast mining.