Flowserve Corp. said it agreed to acquire the Chicago-based Flow Control Division of Invensys plc for $535 million. Invensys Flow Control has annual sales of around $520 million.

According to Flowserve Chairman, President and CEO C. Scott Greer, if approved, the acquisition would make Flowserve the world's second largest producer of valves. The transaction is expected to be financed through a combination of debt and equity. Flowserve Corp. operates in 30 countries, and produces engineered pumps for the process industries, precision mechanical seals, automated and manual quarter-turn valves, control valves and valve actuators, as well as a range of related flow management services.