The acquisition of Coated Abrasives Products Company (CAPCO), which was announced previously, has now been completed. Following the closing on 15 January 2003, sia Abrasives now takes over a conversion and distribution company of coated abrasives that is firmly anchored in the US market. This acquisition is in line with the expansion strategy pursued by this publicly-listed Swiss company and substantially reinforces its position in the USA, which represents its most important growth market. The takeover of CAPCO opens up a distribution network to sia Abrasives which covers both industrial distributors and catalogue customers and which provides entry to the American MRO market (Maintenance, Repair and Operations). With CAPCO supplying to 1200 retail outlets, sia Abrasives thus immediately achieves a significant presence in the USA.
sia Abrasives is integrating the US conversion and distribution company of Coated Abrasives Products Company (CAPCO) into the sia Group retroactively from 1 January 2003. CAPCO employs a workforce of 43 people and records annual sales of approximately USD 6 million. No staff changes are planned at either of CAPCO’s two plants in the states of Minnesota and Louisiana and the company’s former proprietor will continue to head up operations. This will ensure continuity in both management and customer relations on the US market. The parties to the transaction have agreed that the final acquisition price will not be disclosed.
The sia Group has already enjoyed a presence in the USA for the past six years through a conversion and distribution company in North Carolina, so these new locations form the ideal basis for further growth. The takeover of CAPCO represents a further step in the consistent strategy of expansion being pursued by the Swiss specialist in surface technologies.
sia Abrasives already present in large parts of the USAsia products form an ideal addition to the CAPCO range and give an extra boost to sales potential in the USA, which increases the sia Group’s value added and contribution margins over and above the extra sales volume acquired through the takeover.
CAPCO caters to two main groups. First, industrial distributors who supply sia products to small and medium-sized companies active in maintenance, repair and operations (MRO); this provides the sia Group with entry into the American MRO market. The second group consists of catalogue customers who cover the US marketplace via mail order and a dense network of 1200 retail outlets. With effect from January 2003, sia products henceforth become available in large parts of the USA. sia Abrasives expects that these additional distribution channels will lead to a marked increase in sales in the USA.
For further information
Peter A. Schifferle, CEO
Gerhard Mahrle, CFO
Phone: +41 52 724 45 75
Fax: +41 52 724 45 70
E-mail: ir@sia-abrasives.com
Internet: http://www.sia-abrasives.com/
® Correct nomenclature for sia Abrasives Holding AG
As there are other companies and organizations that use the same abbreviation as our company, we would be grateful if you could help to avoid any misunderstandings by always writing our name as follows: sia Abrasives (never just sia by itself). |
