acquisition Henco in Belgium

Aalberts takes important strategic step through acquisition of leading plastic system specialist

As enhancement to Aalberts Industries’ substantive Flow Control portfolio, Henco provides a full range of complementary plastic systems which significantly strengthens Aalberts Industries’ market position. The acquisition creates for Europe a unique portfolio of Flow Control products and systems.

Henco, founded in 1992 by the Belgian entrepreneurial family Hendrickx, is among the market leaders focussed on the development and production of plastic multilayer systems. Since its foundation Henco has invested significantly in 'state of the art' production technologies for the automated production of high-grade multilayer tube and fittings, including extensive test facilities and internal cross linking capacity. Henco is positioned among the market leaders, through its excellent service levels, high-grade quality systems and the most modern production technologies.

Henco, employing 120 fixed employees, generated a revenue of around EUR 105 million in 2007 and is well positioned for further profitable growth. The current management team will remain with the company.

Henco provides complete systems for the distribution of hot and cold tap water, gas distribution and complete radiant heating applications including underfloor heating systems. The portfolio of Henco comprises a range of multilayer tube, plastic press fittings (Henco PRESS^®) supplemented with brass fittings, plastic push fittings (Henco VISION^®) and a broad set of accessories. A number of Henco’s products and systems are patented, thereby providing Henco with a unique and distinctive market position. Henco provides its systems through its own sales organisation supplemented with an international network of agents, to the major European wholesalers’ organisations and several distributors.

The acquisition of Henco fits very well within Aalberts Industries’ strategy which is aimed to continuously strengthen its position on the global Flow Control market. First and foremost, Henco’s portfolio of plastic systems provides a strategic expansion of Aalberts Industries’ already comprehensive portfolio of Flow Control products and systems. This enhances the ability to meet the increasing market demand for complete systems comprising multilayer tube, fittings and adjacent accessories. Through this take-over, Aalberts Industries obtains a full range of high-grade multilayer tube, a product that was predominantly purchased to complement the portfolio of systems. On the other hand, the acquisition enhances the ability to meet the market demand for a complete portfolio of metal, plastic and combined products and systems, where the needs in specific markets can vary distinctively.

In addition, the take-over is a strategic extension of the geographic footprint. Henco is a European supplier with a strong market position in the Benelux and Eastern Europe (including Russia), one of the strategic growth markets for Aalberts Industries’ Flow Control activities

Henco is well positioned for further growth, a development that will be enhanced by Henco’s collaboration with sister companies to optimise cross-selling opportunities, combine sales networks and realise joint purchase cost savings. The culture and entrepreneurial spirit of Henco fits very well with the characteristics of Aalberts Industries' decentralised structure.

The results of Henco will be consolidated as of 1 April 2008 and will directly contribute to the earnings per share. The acquisition will be financed from credit facilities already taken on.