Tyco International Ltd. will pay $300 million for a 75% stake in valve maker KEF Holdings Inc., Reuters reported. Based in the United Arab Emirates, KEF Holdings sells valves for the oil and gas sector. As part of the deal, Dubai International Capital LLC, the private equity investment arm of Dubai Holding, will sell its 45% stake in the company for $178 million. It acquired the stake in 2008 for $126 million, Reuters said.
(Reuters) – Tyco International Ltd will pay $300 million for a 75 percent stake in privately held valve maker KEF Holdings Inc, based in the United Arab Emirates.
The deal, which is expected to close early this summer, would expand Tyco’s flow control segment by expanding its Middle East manufacturing capacity, Tyco said on Monday.
KEF sells valves for the oil and gas sector and has recently added manufacturing and assembly operations in India and Malaysia. It has about 900 employees and is expected to post sales of about $140 million this year.
KEF’s founder and chief executive, Faizal Kottikollon, will remain with the company and hold the remaining 25 percent stake. Dubai International Capital LLC, the private equity investment arm of Dubai Holding, will sell its 45 percent stake in KEF for $178 million, which it acquired in September 2008 for $126 million.
(Reporting by Nick Zieminski, editing by Dave Zimmerman)