ERIKS strengthens its position in de core activity power transmission
FromExecutive Board ERIKS group nv
Telephone+31-72 54 75 888
Date27 November 2007
SubjectERIKS STRENGTHENS ITS POSITION IN THE CORE ACTIVITY POWER TRANSMISSION IN THE NETHERLANDS
The ERIKS group has reached an agreement in principle to acquire all shares of Wielens Beheer B.V. (“Wielens”) in Groningen, the Netherlands.
The activities of Wielens comprise the marketing, sale and customising of a wide range of high quality equipment parts and services specialised in electromechanical power transmission. Wielens serves mainly the industrial maintenance market (MRO) and achieves sales of € 22 million with approximately 70 employees. The head office, the central warehouse and the workshop are situated in Groningen from where Wielens strongly expanded to 9 branches primarily in the northeast of the Netherlands in the last decade.
The acquisition fits in with ERIKS’ policy of aiming at a top 3 position in each core activity in all countries in which ERIKS is present and further expanding its local presence.
With this acquisition:
- ERIKS obtains 9 additional branches including a central warehouse close to its (potential) customers in the maintenance market. The existing ERIKS network will be strengthened and expanded;
- ERIKS obtains via these branches opportunities to increase sales by means of stronger market penetration of its current products groups and to further optimize its services;
- ERIKS substantially strengthens its position in the product group electromechanical power transmission in the Netherlands.
It is expected that the due diligence will be finalised before the end of this year. It is the intention to consolidate the results of Wielens Beheer B.V. as of early 2008. We expect that the acquisition will contribute immediately to the operating result. The funds required for this acquisition will be fully financed from the company’s own resources.