Acquisition of Turpen & Associates finalized
FromExecutive board ERIKS group nv
Telephone+31-72 54 75 888
Date3 November 2006
SubjectACQUISTION OF TURPEN & ASSOCIATES FINALIZED
On 15 September 2006 ERIKS group nv announced having reached an agreement in principle for the acquisition of all shares of Turpen & Associates Inc., Tulsa, Oklahoma, USA. The due diligence has now been completed and the agreement to acquire the shares was signed. The purchase price of USD 7.4 million has been fully financed from the company’s own resources. The results of Turpen will be consolidated as of 1 November 2006.
The activities of Turpen & Associates comprise the marketing, sale, and the customizing of products and services in the field of sealing technology, industrial plastics and bearings.
With approximately 45 employees Turpen achieves annual sales of USD 11 million and supplies its products directly to industrial manufacturers (OEM customers) in the oil and gas industry which is located in Oklahoma and the surrounding states.
Sales by product group can be broken down as follows:Sealing technology
- Flange gaskets 10%
- Rubber technology 10%
- O-rings 30%
- Dynamic sealing elements 25%
- Bearings 10%
- Industrial plastics 15%
The activities of Turpen fit close to those of the existing companies of the cluster ERIKS USA. This acquisition fits in with ERIKS’ policy of strengthening its position in the USA as a specialized knowhow driven distributor in sealing technology and industrial plastics. There are good opportunities for synergy with the three existing group companies in Dallas, Milwaukee and Seattle.
Through this acquisition sales of cluster ERIKS USA are expected to increase on an annual basis to well over USD 35 million and the number of employees to 120.