Wärtsilä has acquired Weir American Hydro from the Weir Group, which is based in the US and Canada.
Ownership will be transferred to Wärtsilä of Weir American Hydro as on 30 June 2016. Weir American Hydro will now be a part of Wärtsilä Services business.
With this acquisition, Wärtsilä will be expanding its global hydro and industrial service offerings.
Weir American Hydro is a supplier, installer and service provider for large equipment for hydroelectric and water distribution industries.
It has specialisation in consultancy, design and precision performance improvement for hydro-turbines and pumps.
The company with its headquarters in York, Pennsylvania US and service centre in Montreal, Canada, employs 241 people recording net sales $45.6m in 2015.
Wärtsilä has more than 30 years of experience in supplying seals and bearings to global hydro and industrial markets.
Weir American Hydro president Alon Roth said: "American Hydro is excited to be an instrumental part of Wärtsilä Services’ aim to be a leading global services provider to the Hydropower & Industrial markets."
Wärtsilä is of the opinion that such investment in the development of new services and technologies can improve operational efficiency and the technical know-how will further strengthen by acquiring Weir American Hydro’s range of capabilities.
Wärtsilä Services president Pierpaolo Barbone said: "American Hydro has an established and respected position in the hydroelectric business.
"The acquisition supports our growth strategy and expansion in renewables, improving our offering and services towards our customers."