Finnish industrial machinery company Metso has signed an agreement to acquire the valve automation division of the India-based valve technology company Rotex Manufacturers and Engineers Pvt. Ltd (RMEPL).

The company has a market-leading position in India in the actuator business and an advanced offering of switches, process valves, and valve automation products and solutions.

The acquired division’s sales in the last fiscal year ending 31st March (2018), were approximately €19m ($23.3m) and it employs around 275 people. It has two manufacturing facilities in the Mumbai area and sales offices in Mumbai, Vadodara, Kolkata and Pune.

The acquisition will complement Metso’s actuation and valve automation offering and enable a full range of actuators for all major valve markets and a broader offering of limit switches for mid-market applications, the company explained in a statement. It also introduces new products to Metso’s process-valve portfolio for the oil and gas, pulp and paper, mining, water treatment and other process industries.

“This acquisition represents an important strategic step for Metso’s valves business. It expands our offering for the current customer segments, especially outside North America, and increases our presence in attractive new industries and application areas,” explained John Quinlivan, President of Valves Business Area at Metso. “In addition, the acquisition strengthens our capacities and our presence in the important Indian market.”

“We are confident that RMEPL’s capabilities and technological solutions will align perfectly with Metso’s offering and global valve network. This acquisition will benefit our customers and employees who have been the most important asset of the Rotex Group,” added Amit Shah, Managing Director at RMEPL.

Closing of the acquisition is estimated to occur in July subject to satisfaction of customary closing conditions. The parties have agreed to not disclose the value of the transaction.