Tyco International Ltd announced in late June that it completed its acquisition of a 75 per cent equity stake in UAE-based KEF Holdings Ltd, an integrated valve manufacturer and provider of steel castings to the oil and gas, chemical, mining and power industries.

'This acquisition gives us a solid platform for growth and expansion in the Middle East region,' said Patrick Decker, president of Tyco Flow Control. 'It provides us with a local, fully-integrated manufacturing facility in the region while broadening our product portfolio to serve the needs of our customers worldwide.'

'This transaction aligns KEF with a highly respected global leader in valve manufacturing,' said Faizal Kottikollon, KEF’s founder and CEO, who will remain with the company in a leadership role following the transaction. 'Tyco’s product knowledge, operations expertise and advanced valve technology are a natural fit with KEF’s local manufacturing and channels into the Middle East market, providing our customers an even higher level of customised choice and service.'

KEF has 900 employees with revenue expected to be approximately $140 million in the 2011 calendar year. Before the close of transaction the business was owned 55 per cent by Kottikollon who will now retain a 25 per cent equity stake in KEF. Dubai International Capital (DIC) which held a 45 per cent of KEF has sold its interest in the business as part of this transaction.

KEF’s plans

KEF Holdings announced earlier this year it would build a plant for the production of valves and steel castings in Abu Dhabi. The new facility would cater to demand from the region’s oil and gas, chemical, mining and power industries.

The $40 million project will include a complex housing a production plant and service centre, raising the number of the company’s production plants to three after Sharjah and India. Construction work on the technical support and after-sale service centre will commence before the end of 2011, followed by the plant, which will produce specialised products for the oil and gas sector including valves, pumps and steel bars.

The KEF range of products include vacuum refined gate, globe, ball, check, and butterfly valves; zinc alloy and aluminium alloy anodes; and components, such as steel and exotic alloy valve castings, cathodic protection equipment, and forgings.

Tyco, a diversified firm

Tyco International Ltd is a diversified, global company that provides vital products and services to customers around the world. Tyco is a leading provider of security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Its 2010 revenue was $17 billion and it has more than 100,000 employees worldwide

Tyco Flow Control, a business segment of Tyco International Ltd, is a leading global manufacturer and marketer of valves and controls, water and environmental systems, and thermal control solutions to vital industries including energy, power, water, mining, chemical, food and beverage, and construction.