Kingspan has bought Halesowenbased Albion Water Heaters for an undisclosed sum.
It sees the management team hand over control following an MBO of the business in 1997 and a secondary buy-out in 2002.
Tenon Corporate Finance advised the shareholders, with Raj Sinhal and Nick Carr handling the deal.
Albion Water Heaters is a leading brand in the water-heating sector, employing over 140 staff.
It manufactures copper and stainless hot water systems for the domestic and industrial markets. Albion has sales in excess of £14 million. It also has manufacturing sites in Caythorpe, Lincolnshire and Manchester.
Having built the business, the owners decided that the time was right to sell.
"Whilst the potential for Albion remains excellent, we considered the time was right for us to seek a partner who could help us take advantage of the opportunities in the market," said Les Hall, managing director.
David Drury, managing director of Kingspan's water heating division, added: "The acquisition of Albion is the latest step in our growth strategy to strengthen our business and achieve a significant market position in this sector. We are looking forward to working with Les Hall and Barry Hamill to grow the Albion business."
Headquartered in Ireland, Kingspan Group is a one billion euros (£690 million) worldwide building products group and manufactures an integrated range of products for the construction industry.
The transaction represents another cross border transaction completed by Tenon.
