ERIKS expands its activities to central Europe
FromExecutive Board ERIKS group nv
Telephone+31-72 54 75 888
Date28 September 2006
SubjectTHE ERIKS GROUP EXPANDS ITS ACTIVITIES TO CENTRAL EUROPE
Acquisition of PASSEROTTI and MOWTA, Poland
After having analyzed the market potentials in the countries indicated as Central Europe (Poland, Czech Republic, Slovakia and Hungary) the ERIKS group made a first step in expanding its activities to this area.As of 1 October 2006 ERIKS group nv has acquired all shares in PASSEROTTI Sp. z o.o., statutorily based in Bielsko-Biala and the enterprise of MOWTA Bogdan Porzych, statutorily based in Gdansk.
The activities of PASSEROTTI comprise the marketing, sale and customizing of products and services in the field of sealing technology and mechanical power transmissions. With approx. 40 employees in the head office in Bielsko-Biala and the branches in Chorzow, Lublin and Zomosc Passerotti annual sales of approx. EUR 5 million is realized. Sales are realized in machine and equipment construction (OEM customers) as well as with industrial end users (MRO customers), in all sectors of industry in Poland.
Sales by product group can be broken down as follows:
- Sealing technology:
Dynamic sealing elements 45%
- Mechanical power transmissions 25%
- Maintenance products 8%
MOWTA is specialized in the marketing and trade of valves and instrumentation. With 6 employees in Gdansk the company achieves annual sales of approx. EUR 1.5 million, especially industrial end users (MRO customers) and projects in the chemical, petrochemical, food and energy industry. Both acquisitions fit in with the ERIKS strategy of building a leading market position in Western and Central Europe in order to become a truly “European Player”. The branch structure of Passerotti will be expanded in the coming years. These acquisitions give the ERIKS group the opportunity to offer its complete range to international operating customers also directly from Poland.
The acquisitions will be fully financed from the company’s own resources and will contribute immediately to the operating result.