Posted to News on 23rd Sep 2008, 14:29
Eriks to acquire Seals Packings & Gaskets Limited (SPG)
Following the acquisition of Wyko in November 2006, and in line with its strategy to take a strong market share for all core activities in all regions where the group has its own branch operations, Eriks has 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.
SPG's activities 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 Barnsley, SPG achieves annual sales of 7million. SPG is particularly strong in the OEM heating and boiler market, plus it 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 per cent
- Moulded parts 38 per cent
- Rubber (cut parts and sheet) 15 per cent
- Miscellaneous products and services 6 per cent
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 now has a significant valve activity in the UK.
Core Competence Centre
SPG is the platform from which Eriks UK can develop a Core Competence Centre for gaskets and moulded parts, providing know-how directly to OEM customers and serving the branches of Eriks UK as a knowledge-driven distributor. The company envisages good opportunities for synergy between SPG and both Eriks UK and other Eriks companies.
Eriks expects that the acquisition of SPG will contribute immediately to the operating result. The funds required for this acquisition will be fully financed from the company's own resources.
SPG's website is at www.spg-gaskets.co.uk.
