ERIKS sells Rencol Tolerance Rings
FromExecutive Board ERIKS group nv
Telephone+31-72 54 75 888
SubjectERIKS SELLS RENCOL TOLERANCE RINGS
Effective as of today, ERIKS has sold its Rencol Tolerance Rings (RTR) activities to Saint-Gobain of France. The sale includes RTR Ltd. in the UK, RTR Japan Ltd. and the 51 percent controlling interest in Rencol MMI Technology Pte in Singapore.
RTR is a highly specialised manufacturer and distributor of tolerance rings, mainly supplying the hard disk drive and automotive industries. In 2007 the company achieved sales of approximately GBP 11.3 million with 120 employees.
The selling price (the enterprise value) amounts to GBP 12.5 million. The total selling price is equal to the sum of the operational assets and the amounts paid for intangible fixed assets and goodwill in November 2006.
ERIKS acquired RTR as part of the Wyko acquisition in November 2006, however tolerance rings are not part of the core activities of the ERIKS group. We expect RTR will have a bright future as part of the Saint-Gobain organisation.