Executive Board ERIKS group nv
+31-72 54 75 888
9 January 2004
THE ERIKS GROUP STRENGTHENS ITS MARKET POSITION IN BELGIUM AND SELLS ITS AEROSPACE ACTIVITIES IN FLORIDA, USA
Acquisition industrial business activities of Metalen Verhoestraete nv in Roeselare, Belgium
On 1 January 2004, ERIKS group nv acquired the commercial activities of Metalen Verhoestraete nv. The due diligence has been completed and the agreements have been signed. The acquired activities comprise the marketing and sales of a wide range of technical components and tools to the industrial maintenance market mainly in the area of West Flanders. With 26 employees Metalen Verhoestrate nv achieves sales of well over € 6.0 millions.
The product range consists of:
- Tools 36%
- Fasteners 19%
- Power transmissions 16%
- Other MRO products 29%
As an independent company located in Roeselare the acquired activities will be incorporated in the Baudoin group which already is part of the ERIKS group. Based in Mol, Belgium, the Baudoin group already has nine branches in Belgium and Luxembourg. This acquisition fits in with ERIKS’ strategic choice for forward integration and secures an important position in a geographic market area in which, until now, our market share is still low. The funds required for this acquisition (assets/liabilities transaction) have been fully financed from the company’s own resources. In purchase price included goodwill amounts to approx. € 800,000.=. The acquisition is to be expected to contribute immediately to the operating result.
The steel and metal products business and relating subcontracting activities are no part of this acquisition. These activities will be expanded further by Metalen Verhoestraete nv.
Sale of ERIKS Aerospace, Inc., Ft. Lauderdale, Florida, USA
Effective 1 January 2004, ERIKS group nv sold the activities of ERIKS Aerospace, Inc. The activities comprise the marketing and sales of aircraft components to the aerospace maintenance market. In 2003 the company achieved sales of approximately USD 3.5 million with 15 employees. By selling ERIKS Aerospace we say farewell to the aerospace maintenance market. The divested activities did not contribute to the operational result for the past two years. We suffered a small book loss of about USD 100,000.= on this transaction.
Financial results 2003 ERIKS group
The financial results for the year 2003 will be published on Thursday 26 February 2004.