acquisition Hidroaplicaciones in Spain

Aalberts expands in Spain

Aalberts Industries N.V., with activities in the area of Industrial Services and Flow Control, is taking over the Madrid based Hidroaplicaciones Group S.A.

Hidroaplicaciones is specialised in Flow Control products and systems for gas and water distribution works. The company realises a turnover of approximately eur 10 million and is leader in its market niche. Hidroaplicaciones is principally engaged in the provision of a full range of valves and other products directly to water companies and large installers and contracting companies used in the conduction of water from the mains system to the individual buildings. It also has a growing business in the provision of gas systems and other related products.

The takeover consolidates Aalberts Industries’ already existing Flow Control activities in Spain by giving it an immediate presence in the important Madrid region. Furthermore, the takeover adds a new distribution channel for its Flow Control products in Spain. In addition to distribution through the wholesale trade, Aalberts Industries now has a direct channel to wholesale customers at its disposal.

Hidroaplicaciones will obtain a considerable part of the products applied in its systems from Standard Hidráulica, another of Aalberts Industries’ Spanish subsidiaries. The Spanish companies will also cooperate closely in other areas, like sales and product development.

On a European level, Hidroaplicaciones will cooperate with the other companies within the Aalberts Industries Group which focus mainly on products and systems for distribution networks like Raufoss (N), HSF (NL) and Seppelfricke (D).

The current management will continue to be associated with the company.

The results of Hidroaplicaciones will be consolidated with effect from 1 August 2005, and make a direct contribution to growth in the earnings per share. The transaction is to be fully financed from our own resources.