Dunlop Aerospace being bought by Dorset firm.
Aerospace and defence company Meggitt, based in Dorset, is expected to finalise the buyout deal for Dunlop next month subject to shareholder agreement.
The Coventry design and manufacturing complex at Holbrooks employs around 800 people and its new owners are looking forward to expanding the business which is a major supplier of wheels, brakes and hydraulics for the world- wide aircraft industry.
The Coventry division comprises four business units: braking systems, polymers and composites, fluid dynamics and aftermarket services.
Dunlop Aerospace has recently experienced a surge in activity with key contracts for component supplies for the Joint Strike Fighter and Airbus A380. Last year it made operating profits of pounds 35.1 million.
Terry Twigger, Meggitt chief executive officer, said: "We believe that Meggitt can provide these businesses with the leadership and critical mass to make them even more successful than they are today.
"The combined businesses will be able to explore new markets and technologies in their pursuit of strategic growth. There will be ongoing support for key technologies such as electric brakes and lightweight metal matrix materials which will deliver significant benefits to the aerospace industry."
David Shaw, CEO of Dunlop Aerospace, said: "Meggitt is a very appropriate strategic buyer for the D&M Division. The acquisition of the Dunlop companies provides Meggitt with key intellectual property in new products and complementary market growth in related products".
Meggitt says the Coventry operation will continue under the leadership of David Johnson, managing director, and will integrate under the corporate guidance of Meggitt, as it continues its long-term growth programmes.