ERIKS group nv has agreed to buy WYKO holdings Limited, based near Birmingham, Great Britain. WYKO is a distributor of power transmission, sealing technology, fluid power and maintenance products, mainly in Great Britain, with expected sales of 240 million GBP, or US$456 million, this year.
WYKO has a market share of about 10-15% in Great Britain. The company will provide the ERIKS group with a major position in a new domestic market, and strengthen its position in existing markets.
About 90% of WYKO's sales are in Great Britain; the remaining 10% are through WYKO branch operations in the Netherlands, Belgium, Germany, Slovakia and Ireland and the U.S. and Malaysia. The combined ERIKS/WYKO is expected to produce pro forma annual sales of EUR 850 million, or US$1.1 billion. The combined ERIKS/WYKO will have strong market positions in Great Britain, the Netherlands, Belgium, Luxembourg, Germany and Poland (the domestic markets) and additional branch operations in various other European countries (France, Ireland and Slovakia), the U.S. and Southeast Asia.
ERIKS aims to continue the internationalization of its business, it said in a release, by focusing in Western and Central Europe.