The mechanical power transmission giant Rexnord is buying its Milwaukee neighbour, the Falk Corporation, for $295m from Hamilton Sundstrand, a subsidiary of United Technologies. Like Rexnord, Falk produces mechanical components such as gear drives and couplings.

"By combining two companies that have complementary products and technologies, we create a bigger, stronger business, with combined annual revenues in excess of $1bn," says Rexnord`s chief executive, Robert Hitt.

Rexnord, with annual sales of about $800m, produces components such as chain, bearings and seals at 30 manufacturing sites around the world. Falk, whose annual sales are worth around $200m, has facilities in the US, Canada, Mexico, Brazil, China and Australia.

The takeover is expected to be completed during the second quarter of this year.