Birmingham-based pump manufacturer Concentric has been acquired by Haldex, the Swedish-based automotive technology group, for an undisclosed sum.

Concentric, which manufactures oil, fuel and water pumps for medium and heavy diesel engines, was previously owned by European private equity firm Bridgepoint.

The acquisition is subject to regulatory approval in Germany but is expected to be complete by the end of March. The deal secures the jobs of almost 300 workers at the Gravelly Hill plant.

Under the deal, Concentric will join Haldex's Hydraulic Systems division and its chief executive Ian Dugan will take over as head of the enlarged division.

Mr Dugan said: "We are very excited about becoming part of Haldex. In terms of brands and market position, both Haldex and Concentric embody similar core values of quality and technological innovation.

"Moreover, the two businesses are complementary in terms of product, with Haldex specializing in hydraulic pumps and Concentric in engine pumps, which means increased potential for both."

The deal will also allow the expanded company to further develop its presence in the global markets, especially within developing countries.

Concentric chairman John Redwood MP said he was delighted with the deal.

"They [Haldex] like our products and technology, they will benefit from our global footprint and they want our senior management to play a prominent role in an enlarged business.

"Haldex will be an excellent new partner that can help us take Concentric to the next stage in its expansion and develop-ment," he said.

Concentric is a major supplier to the world's diesel engine manufacturers, supplying oil, water and fuel transfer pumps, as well as coolant pumps and fan support brackets for transmissions and compressors.

Applications range from trucks and buses to materials handling, construction, agricultural and off-highway machinery. Besides the UK, it has factories in the US, India and China.

Amicus union convenor, Bob Gallagher, said such a sale had looked a long off in 2002 when the company was on the verge of going out of business.

"But these people [Bridgepoint] came in and turned the business around, and now it is making big profits.

"We are doing very well at the moment, particularly in European markets, and I believe the future now looks very, very good for Concentric Pumps," he said.

"We have been told that our pensions are safe and that there will be no job losses," he added.

Mr Gallagher said he hoped the sale would lead to more work coming into the Birmingham plant.

Haldex chief executive Joakim Olsson said: "The Concentric management team will add valuable expertise to Haldex Hydraulic Systems.

"With this transaction, Haldex has the foundation for being a truly leading business internationally with a niche product offering in applications for diesel engines with a strong focus on emissions reduction and fuel efficiency."

Haldex operations are divided into four business areas: braking for commercial vehicle systems, hydraulic pumps, power systems and fuel transfer pumps, advanced spring wire for combustion engines and transmissions, and traction systems supplying electronically controllable or AWD systems for four-wheel drives.

The group is building up an increasingly global presence in order to meet demand and there are already 23 production facilities in Brazil, China, Germany, Hungary, India, Mexico, Sweden, the UK and United States.