Invensys is selling its Lambda power supplies business to Japan`s TDK Corporation for £134m. The deal includes Lambda`s European and North American operations, and its 58.2% stake in Densei Lambda.

TDK says that the combination of Lambda with its existing power supply business will create the world`s second-largest power supply manufacturer, with the largest share of the industrial market "by some considerable distance".

Last year, Lambda produced a profit of £11m on sales worth £229m. It employs about 3,500 people, including those at Densei Lambda. The company, which produces AC-DC power supplies and DC-DC converters in ratings from 1.5-50kW, has its headquarters in Ilfracombe, Devon.

TDK says the acquisition should boost revenue from its power supplies business to about £500m. The deal is due to be completed by the end of September.