Swiss Tyco to buy 75% stake in UAE valve maker

Switzerland's Tyco International Ltd has signed a definitive agreement to acquire a 75% equity stake in privately-held KEF Holdings Ltd for about ＄300 million in cash. Based in the United Arab Emirates, KEF is a fully integrated valve manufacturer and one of the world's leading providers of steel castings to the oil and gas, chemical, mining and power industries.

KEF has 900 employees with revenue expected to be about ＄140 million this year. The business is 55% owned by Kottikollon who will retain a 25% equity stake in KEF following the close of the transaction. Dubai International Capital (DIC) holds the remaining 45% of KEF and will sell its interest in the business as part of this transaction. Meanwhile, Faizal Kottikollon, KEF's founder and CEO will remain with the company in a leadership role following the transaction.

Tyco Chairman & CEO Ed Breen said the transaction provides a flow control business with a strategic manufacturing presence in the Middle East region, while broadening their product portfolio for customers around the world.