UK's Weir Group acquires BDK Engineering's valve business
03 September 2010
The Weir Group of the UK today agreed to acquire the Rs1.52-crore valves business of Karnataka-based BDK Engineering Industries Limited (BDK).
Hubli-based BDK, a privately owned company, manufactures valves for the oil and gas, petrochemical and power markets.
The business had gross assets of Rs1.22 crore (£16.7 million) and generated sales of Rs1.52 crore (£20.9 million) in the year to 31 March 2010.
Financial terms of the transaction were not disclosed.
Founded in 1872, the Weir Group is an engineering company headquartered in Glasgow, Scotland and is listed on the London Stock Exchange.
It provides specialised mechanical engineering solutions to the global minerals, oil & gas, and power & industrial industry.
The Weir Group employs 9,000 people globally and had revenues of £1.39 billion in 2009. But the company has seen net income shrink from £170.8 million in 2008 to £128.8 million in 2009.
Weir India currently has two main operations in Bangalore serving the minerals and power and industrial markets and currently employs 350 people. Weir India also has a significant engineering shared service capability providing engineering support to many Weir companies globally.
"This acquisition further strengthens our emerging market footprint. BDK's range of valves will enhance our global customer offering and its Indian sales network will provide an additional route to market for many of our existing products," said Keith Cochrane, chief executive of Weir.
"My family has developed BDK over the last 30 years into an internationally recognised valves manufacturer. We are pleased to entrust the next stage in the growth of the business to an engineering group of Weir's global standing. We are convinced that this is an excellent outcome for customers and employees," said Bharat Khimji, BDK's founder.
Weir said that the closing of the deal is conditional on tax clearance and is scheduled for early October 2010.