acquisition 51% of shares KAN in Poland

Aalberts acquires majority stake in Polish market leader

Aalberts Industries N.V., which operates in the fields of Industrial Services and Flow Control, has reached agreement with the shareholders of KAN Sp. z o.o. (KAN), a business established in Białystok, Poland, on the acquisition of 51% of the KAN shares. The acquisition will be definitively effected as soon as all formalities have been finalised.

KAN, with more than 300 employees and a turnover of about EUR 20 million, produces plastic tube systems and is market leader in Poland, the Ukraine and Belarus. In addition, KAN has its own sales organisations in Russia and other East European countries.

The so-called ‘KAN-therm’ plastic tube system is suitable for both (potable) water as well as heating (including floor heating) and consists of plastic tubes, plastic fittings, manifolds and heating accessories. In addition, KAN produces brass fittings and housings for gas and water meters.

The takeover of the majority interest in KAN fits into the strategy of Aalberts Industries to strengthen its Flow Control activities in the major East European growth markets. Notably KAN’s comprehensive distribution network and the existing leading market positions in the various East European countries will enable Aalberts Industries to benefit from the substantial growth in these markets. The KAN distribution network will make it possible to speed up the introduction of a large number of the Aalberts Industries Group Flow Control products, to supplement the existing KAN products.

KAN is continually expanding its distribution network, and in combination with the existing Aalberts Industries selling organisations in East Europe will have a very deep market penetration. In virtually all countries, there will be full market coverage, giving Aalberts Industries a significant lead on most of its competitors.

The KAN-therm system will be introduced in a number of West European countries as well, making use of the existing European network of Aalberts Industries. KAN’s German establishment will be working closely with the German Flow Control organisation.

Positive collaborative effects will also be realised in the field of purchasing and the exchange of product technologies.

The existing management team, whose members are also shareholders, will continue to be in charge of the joint enterprise.

The acquisition will be financed from Aalberts Industries’ own resources and will directly contribute to the growth of its earnings per share.