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The eBearing News
October 19, 2006
Wyko Acquired by Eriks Group
copyright © 2006 eBearing Inc.
Wyko Industrial Services (UK, privately held) has been acquired by Eriks Group
(Netherlands,
Euronext Amsterdam ERIKG,
[website]). Eriks has recently been on an acquisition
binge, buying up bearing and power transmission distributors in the UK, Belgium, Poland and the United States
in response to changing international industrial markets.
With the Wyko acquisition, Eriks becomes the "undisputed European market leader" supplying
bearings, seals, power transmission equipment and MRO supplies. Operations are located across the UK,
Netherlands, Belgium, Luxembourg, Germany, Poland, Slovakia, France and Ireland, along with the United States
and into southeast Asia.
Wyko got its start in 1966 as Lye Bearings, and later began acquiring local power transmission
distributors. After listing on the London exchange from 1985 to 1999, the company was taken private again in
a management-led leveraged buyout financed by the Royal Bank of Scotland.
It has since continued to expand aggressively and successfully.
Today, Wyko is the UK's largest manufacturer and supplier of bearings and power transmission equipment, with
more than 160 locations, 2,000 employees and annual sales over € 358 million (USD $455 million).
It is made up of several distinct operations:
Wyko Industrial Services has 110 branch operations
and 103 so-called "insites" on site at specific customers. Wyko Industrial Distribution has 80 branch
operations and 18 insites. Wyko Electro Mechanical Engineering Services has 30 branch operations,
some shared with Wyko Industrial Services. Wyko Integrated Solutions is the fastest-growing operation
within Wyko and provides customers with on-site service teams.
Wyko also has four manufacturing operations: Revolvo Bearings (UK, bearings), Rencol (UK and Malaysia, tolerance
rings), Tire Technology (UK and USA, tire production tooling), and Pioneer Weston (mechanical rotary axle
seals).
Revolvo Bearings was founded in 1968 and acquired by Wyko in 2004. The division now
manufactures a wide range of high-precision specialty bearings. Operating divisions
are Revolvo Precision Products, Split Roller Bearings, and RF1.
This past June, Wyko began an extensive program to retool Revolvo and update its manufacturing resources.
article: Wyko investing in Revolvo advanced manufacturing
Eriks is a similar success story. Based in the Netherlands, Eriks today is an international conglomerate
of suppliers to the manufacturing industry worldwide -- bearings and power transmission equipment,
seals and o-rings, tools and tooling, lubricants, plumbing supplies and industrial plastics.
With its share price on a long and steady climb for the past several years from a low of € 10 per share,
it currently trades at approximately € 49 per share.
Third quarter financial results for Eriks Group are scheduled to be released November 13, 2006.
The Wyko acquisition follows closely three Eriks acquisitions of seals and bearing distributors.
In early October, Eriks acquired Passerotti Sp. z.o.o. (Poland) and MOWATA
(Poland), both important suppliers of o-rings, seals, bearings and power transmission and maintenance
products to Poland's heavy industry. In mid-September, Eriks strengthened Eriks USA by acquiring
Tulsa, Oklahoma based Turpen & Associates Inc., suppliers of seals and bearings to the oil and gas industry.
In July 2006, Eriks acquired RIV Charleroi (Belgium), supplier of bearings and seals to the industrial
aftermarket in Belgium, for its Belgium-based Baudoin Group. Eriks' Baudoin Group is the largest supplier
of bearings and seals in Belgium and Luxembourg.
Eriks is reportedly paying € 209 million ($266 million) for Wyko, financed by a bridge loan. Bill Wilson
and Mark Dixon, CEO and COO of Wyko, respectively, will remain with the company and join Eriks' Executive Board.
In a statement, Mr. Wilson said: "Eriks is a fantastic company and the merger is going to be very
complimentary in terms of geography and product ranges. There are no adverse implications for us and
our employees, which is one of the attractions of this deal for us."
Eriks' CEO, Jan van der Souw, noted the company's recent moves are in response to inevitable change and
consolidation in its core markets: "Internationalization of business is ongoing. In the markets of Eriks'
presence, too, significant consolidation is taking place among manufacturers, distributors and industrial
end users."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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