Following the acquisition of WYKO in November 2006 and in line with ERIKS strategy to take a strong market share for all core activities in all regions where the group has its own branch operations, we have reached an agreement to acquire Seals Packings & Gaskets Limited (SPG) in the United Kingdom.
On 1 August 2008, ERIKS group nv acquired the entire share capital of SPG which is statutorily based in Barnsley, United Kingdom.
The activities of SPG comprise the marketing, sale and customising of products and services in the field of gaskets, rubber and moulded parts. With a total of 52 employees based in Barnsely, SPG achieve annual sales of GBP 7.0 million. SPG is particularly strong in the OEM heating and boiler market but also has significant business in the OEM pump sector and across various MRO markets such as power, automotive and food.
Sales by product group can be broken down as follows:
- Gaskets 41%
- Moulded parts 38%
- Rubber (cut parts and sheet) 15%
- Miscellaneous products and services 6%
With the acquisition of SPG the ERIKS UK cluster has added a new core activity next to its current core activities of power transmission, sealing technology, hoses and electro mechanical repairs. Additionally, with the acquisition of Econosto in May 2008 ERIKS also now has a significant valve activity in the UK.
SPG is the platform from which ERIKS UK can develop a Product Business Unit for gaskets and moulded parts, providing know-how directly to OEM customers and serving the branches of ERIKS UK as a know-how driven distributor. We envisage good opportunities for synergy for SPG with ERIKS UK and other ERIKS companies.
The results of SPG will be consolidated as of 1 August 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.
Please refer to our website www.eriks.com for detailed information about the ERIKS group.
SPG's website may be found at http://www.eriksgaskets.co.uk