The Weir Group PLC has agreed to acquire the valves business of BDK Engineering Industries Limited ("BDK"). Completion is conditional on tax clearance and is scheduled for early October 2010. The business had gross assets of £16.7m (INR 1.22bn) at 31 March 2010.
BDK, a family owned business based in Hubli, Karnataka, India, manufactures valves for the oil and gas, petrochemical and power markets. The business generated sales of £20.9m (INR 1.52bn) in the year to 31 March 2010.
Keith Cochrane, chief executive of Weir, said: "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."
Commenting on the transaction, Bharat Khimji, BDK's founder, stated: "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. My sons and I look forward to continuing to play our roles in ensuring a smooth transition."
£1 = INR (Indian Rupees) 72.7
NOTE: Further information on BDK is available from its website www.bdkindia.com.
WEIR IN INDIA
Weir India currently has two main operations in Bangalore serving the Minerals and Power & 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.