A major takeover deal involving one of Gloucestershire's biggest companies is in the pipeline, according to the firm.

The Cheltenham engineering business has revealed it is in talks to buy French-owned Thermocoax from its current owners - for "a cash-free, debt-free consideration" of £139 million (€158 million).

A deal would add to further Spirax Sarco's portfolio and further strengthen its position in Europe and America, where Paris-headquartered Thermocoax already has manufacturing facilities.

Nicholas Anderson, group chief executive of Spirax Sarco Engineering plc, said: "The combination of Thermocoax and Chromalox will significantly strengthen our electrical thermal energy solutions presence in Europe while expanding our technology and product offering worldwide.

"We believe that the global Spirax Sarco footprint will allow both businesses to expand more rapidly into new geographic areas providing sustainable value creation for customers and shareholders."

Spirax Sarco Engineering plc, is described as "a world leader in the control and efficient use of steam, electrical thermal energy solutions and peristaltic pumping and associated fluid path technologies".

Thermocoax is a leading designer and manufacturer of highly engineered electrical thermal solutions for critical applications in high added value industries.

Its core technology is mineral insulated (MI) cable, a product described as "extremely robust" and "highly resistant to extreme environments" such as high temperatures, pressures, vibration and radiation.

Thermocoax has three manufacturing facilities in Normandy, one in Heidelberg, Germany, and one in Georgia, USA.

Spirax Sarco, which employs an estimated 1,100 staff in Gloucestershire, said the deal would "significantly enhance our electrical process heating business, especially in Europe" and "strengthen our market position".

Thermocoax's gross assets were valued at €94.6 million (£83.0 million).