Japan's Kurita Water Industries Ltd agreed to buy APW, the water treatment business owned by Israel-based manufacturer ICL Israel Chemical Ltd for 250 million euros ($316.94 million), the companies said on Sunday.

The transaction, expected to be completed by the end of the year, will help Kurita expand into European markets and also fits with ICL's plan to spin off non-core assets, the companies said in a statement.

"Combining Kurita's existing customer base, which is mainly in Japan and the Asia region, with APW's customer base, will further strengthen Kurita's overseas business platform," said Kurita President Toshiyuki Nakai.

APW, the aluminum, paper chemicals and water treatment business that was part of ICL's Performance Products arm, is based in Ludwigshafen and Dusseldorf, Germany.

The transaction will also include other ICL Performance Products entities in Europe and China, the statement said.