Langbroek, 7/9/2004
Aalberts Industries creates strong position in North American

Aalberts Industries has reached agreement on the takeover of certain Flow Control activities of American listed company Amcast Industrial Corporation. This puts Aalberts Industries in the top position in the world market for copper fittings. The closing of the takeover is subject to conditions typical in a transaction of this nature, including the termination of the notice period required by American antitrust laws. The subject of the takeover, Elkhart Products Corporation, with its head office in Elkhart, Indiana, includes three production facilities in the USA and an extensive sales network in the USA and Canada.

With an expected turnover of around USD 130 (EUR 110) million and a workforce of circa 430 employees, Elkhart Products Corporation (EPC), is one of the three biggest players in the North American market. EPC concentrates on the wholesaler market, where it has an estimated market share of 35%. EPC’s 10% share of the retail market makes it the third largest retail supplier.

The takeover gives Aalberts Industries a strong base in the American market upon which to build in the years ahead. It also adds substantial, geographically well-distributed turnover to Flow Control activities as a whole.

The structure of the American market gives Aalberts Industries enormous potential for expanding its Flow Control activities through organic growth. In the short term, the introduction of new types of fittings, like press fittings and Tectite push-fit fittings already successfully introduced in Europe, will significantly broaden the EPC range in the American market. In the medium term, products from Aalberts Industries’ current Flow Control range will also be introduced.

Its new position in the American market and an estimated 20% share of the European market for fittings makes Aalberts Industries the number one player in the world market.

In addition to joint product and market development, EPC and the other Aalberts Industries fittings operations will work together closely on production efficiency and production specialisation. The takeover also represents an increase in Aalberts Industries’ purchasing power and provides the opportunity for joint purchasing to range over an even larger geographical area (global sourcing). EPC will also act as a platform for new Flow Control acquisitions, with a focus on products that complement fittings (valves).

The takeover fits in with Aalberts Industries’ strategy of vigorously expanding its Flow Control activities through the addition of so-called ‘basic products’ (which includes the fittings systems) and servicing a large number of niche markets from a strong position in these basic products. Aalberts Industries’ position in the world market for fittings systems provides solid support for the development of markets for products with a higher added value.

The takeover is also in keeping with Aalberts Industries’ policy of helping to ensure balanced company growth by increasing its turnover outside Europe as well and building a substantial position in the American market. Aalberts Industries has, of course, already been active for quite a while in the USA, where its annual turnover is around EUR 20 million.

The takeover – in the form of a so-called ‘assets/liabilities’ transaction – will be financed from own resources.

From 1 July 2004 the figures for EPC will be included in the consolidation. EPC will make an immediate contribution to the successful growth of Aalberts Industries and therefore to the growth in earnings per share in 2004.

For further information on EPC: www.elkhartproducts.com

6/15/2004
Taprite-Fassco Launches new Web site

The re-designed Taprite-Fassco web site (www.taprite.com) launched today, with a number of new features for improved viewer use. Most noticeable upon first visit to the web site is the new layout and use of product images.

A more consistent navigation was created for the site, allowing customers to easily find the product information that they need by the most direct path, which also saves time.

Each product model, including some new additions just added for this re-launch, is accompanied by a downloadable product sheet, and some also have downloadable parts lists. These online listings allow Taprite-Fassco’s customers to have instant access 24 hours a day to the information they need, from any location.

Order info is provided at each product listing, and a complete list of distributors is posted so customers can find their nearest Taprite-Fassco contact. Customers can also contact the manufacturing plant directly through a direct e-mail link.

The new web site also provides links to other divisions in the family of companies to which Taprite-Fassco belongs, plus a connection to the parent company of Aalberts Industries in The Netherlands.