Tyco International, a leading provider of security and fire protection and detection products, has signed a deal to acquire a 75 per cent equity stake in KEF Holdings, a leading valve maker in the UAE, for $300 million.

KEF is also one of the world's leading providers of steel castings to the oil and gas, chemical, mining and power industries.

The UAE firm is 55 per cent owned by its founder and CEO Faizal Kottikollon and Dubai International Capital (DIC), which holds the remaining 45 per cent.

As part of an agreement with Tyco, DIC will sell off its 45 per cent stake in the Emirati business to the firm. The transaction is expected to close in early summer, subject to customary closing conditions including regulatory approvals, said a top official.

'This acquisition is a further step in our strategy to strengthen our leadership position in our core security, fire and flow control platforms,' said Tyco chairman and chief executive officer 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,' Breen noted.

Following the close of the transaction, Kottikollon will remain with the KEF in a leadership role with a 25 per cent equity stake in the company, he added.

Commenting on the deal, Kottikollon said this transaction aligns KEF with a highly respected global leader in valve manufacturing.

'Tyco's product knowledge, operations expertise and advanced valve technology are a natural fit with KEF's local manufacturing and channels into the ME market, providing our customers an even higher level of customized choice and service,' he added.

KEF has 900 employees with revenue expected to be approximately $140 million this calendar year.

Patrick Decker, president of Tyco Flow Control, said, 'This acquisition will enable us to better serve customers across the region by drawing on the considerable strengths and deep experience of the KEF team in the areas of design, manufacturing and service.'

'It significantly enhances our footprint in the region and provides us with a platform for our future growth and expansion,' he added.

Tyco, a diversified, global company, netted revenue of $17 billion in 2010 and boasts of more than 100,000 employees worldwide.-TradeArabia News Service