acquisition Hartman Groenlo Beheer in the Netherlands

Aalberts Industries N.V., listed on the Amsterdam Stock Exchange, has reached an agreement with the present shareholders of the Hartman group concerning the take-over of 100% of the shares in Hartman Groenlo Beheer B.V., holding company of all companies belonging to the Hartman group.

Like Aalberts Industries, the Hartman group operates in the fields of both Flow Control Systems and Industrial Services and achieves a turnover of approximately NLG 50 million. All the Hartman businesses are based in the Netherlands, employing a total of over 200 staff. The present board remains part of the company.

In terms of its Flow Control Systems activities, Hartman focuses on energy and water companies and specifically, in addition to components, manufactures and sells assembled units that can be entirely installed by these companies. In this way, Hartman is able to take advantage of the trend started by the energy and water companies for concentrating on their core business and contracting out the installation of the required systems whenever possible.

On the Dutch market, these activities perfectly complement those of VSH, a major subsidiary of Aalberts Industries. VSH concentrates chiefly on manufacturing and selling components for Flow Control Systems, selling particularly to the wholesale trade. In the future, both companies will co-operate closely in the field of product development and production.

In addition, Hartman will further develop contacts with several other subsidiaries of Aalberts Industries on the international market. Successful co-operation is already underway with Seppelfricke in Germany, where Hartman and Seppelfricke are working jointly on complete gas connection units for European energy and water companies.

Hartman’s activities in the area of Industrial Services fit in with the remaining Aalberts Industries activities in this domain. The take-over also means that Aalberts Industries will have the opportunity within its Industrial Services activities to manufacture plastic components. Current know-how in the field of plastics is also of major importance for the intended development of plastic products for Flow Control Systems.

Over the next three years a substantial investment plan will be implemented, worth a total of approximately nlg 20 million, to secure the future growth of the Hartman group.

The take-over of the Hartman group fits into the strategy pursued by Aalberts Industries to expand its market positions and product portfolio through selective take-overs. The share transaction will be funded from the company’s own resources. As of 1 July 2000, the Hartman group results will be included in the consolidated figures and will contribute to the growth in profits per share.