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(Reuters) - British engineering company IMI Plc said it would acquire Germany-based valve maker Bopp & Reuther Holding GmbH for an enterprise value of 152.6 million euros (about $190 million) (121.18 million pound) to strengthen its power sector offering in emerging markets.
Shares in IMI fell as much as 2.4 percent in early morning trade, making the stock the top percentage loser on the FTSE-100 Index.
IMI, which supplies flow-control systems such as valves for power, nuclear, oil and gas and petrochemical plants, said Bopp & Reuther would become part of IMI's Critical Engineering division.
The acquisition will add to earnings in 2015 and synergies of about 9 million pounds are expeceted from the combination by the end of 2017, IMI said.
Privately owned Bopp & Reuther, which has a large customer base in China, India and Korea, makes control and safety valves for the power industry.
IMI also reported a revenue decline of 6 percent for the four months to the end of October citing the "ongoing adverse impact of exchange rate movements."
Order intake in its critical engineering unit was up 10 percent in the four months boosted by project wins, particularly from the oil and gas sector, IMI said.
Acquisitions were on IMI's radar, Chief Executive Mark Selway told Reuters in August as the company unveiled a five-year plan to double full-year 2014 operating profit by 2019.
Selway, who joined IMI in January from Weir Group Plc, said the latest deal would increase IMI's exposure to emerging markets, mainly in China and India where the power markets are forecast to grow 5 percent to 7 percent per annum over the next five years.
Bopp & Reuther reported revenue of 90 million euros and EBITDA of 11.2 million euros in 2013.
IMI expects to complete the deal, which would be funded from existing bank facilities, around the end of the year.
(Reporting by Aashika Jain in Bangalore; Editing by Gopakumar Warrier)