Picanol, the Belgian weaving machine maker, announced that they have purchased a 27.6% stake in Tessenderlo Chemie, a Belgian chemicals group. The stake was purchased from SNPE, the state-owned propellant and explosives maker from France. The weaving machine maker is set to widen its operations through the Tessenderio Chemie acquisition.

Picanol said that they have agreed to pay approximately EUR22 per share. The total purchase price was tagged at EUR192 million or US$254.1 million. Picanol announced that they will finance the purchase from the company's own funds.

"We have had some strong years behind us and were looking for a place to invest," Picanol's spokesman Frederic Dryhoel said.

"Because of the cyclicality of our business we wanted a project in another industry with an international business but its headquarters in Belgium," he added.

Tessenderlo sold off a number of its plastic and basic chemicals, and is now focused on specialized activities, like fertilizers and gelatin, as well as the processing of food waste.