acquisition Pemag in Spain

Aalberts strengthens position in Spanish gas market

Aalberts Industries N.V., whose activities are in the fields of Industrial Services and Flow Control, is taking over Madrid-based Pemag, S.A.

Pemag is specialised in complex gas distribution systems for both small and large consumers. With sales of about EUR 4 million, Pemag is one of the leading suppliers of gas systems in Spain, particularly in the Madrid region. Pemag’s customers consist mainly of the large (gas) utility and installation companies.

The incumbent management will continue to serve the company.

The acquisition of Pemag is consistent with the aim of Aalberts Industries to expand its position in the important utilities sector. Pemag will be collaborating closely with Hidroaplicaciones, likewise based in Madrid, which mainly specialises in distribution systems for water companies, and supplies gas systems to a limited extent as well. Jointly, the companies will be able to offer a broad range of products in the strongly growing Spanish utilities market.

The collaboration with other entities in the group, including Raufoss (Norway), HSF (the Netherlands) and Seppelfricke (Germany), entails a strengthening of Aalberts Industries’ position in the European utilities market as well; this way the company is already responding to the expected international consolidation in this market.

The acquisition forms part of Aalberts Industries’ strategy not only to expand its strong market position in basic (Flow Control) products, but to have a presence in additional, high-quality niche markets as well.

Pemag’s results will be consolidated as from 1 April, and will directly contribute to the growth in earnings per share.

The takeover of the French company Comap, announced earlier this year, was formally completed in the past few days. The Comap results will be consolidated with effect from 1 March 2006.