Poland Leading Bearing Distributor Acquiring Fin S.A.

Poland Leading Bearing Distributor Acquiring Fin S.A. Brammer plc (UK; LSE: BRAM; website) announced it has reached agreement to acquire Fin S.A. (Poland). The acquisition will be in two stages; 51% now, after Polish competition authorities' approval, and the remaining 49% between 2010 and 2012. Fin S.A. is Poland's leading distributor of bearings and power transmission equipment, with 11 branches and 165 employees nationwide. Sales last year were £17.5 million. The acquisition will cost Brammer £4.9 million in the first round for 51%. The second round, for the remaining 49%, will be dependent upon Fin's interim performance -- anywhere from £4.7 million and £14.1 million. Brammer's Chairman, David Dunn, said: "We are delighted to announce the acquisition of Fin which further extends Brammer¡¯s European market leadership. It strengthens our position in Eastern Europe and gives us a base from which to grow earnings through greater market penetration in Poland, a key industrial economy. The acquisition fits our stated strategy of acquiring quality businesses which closely fit Brammer¡¯s established product portfolio and business strategy in order to complement the organic growth opportunities in our key account and pan-European businesses." In mid-2006, Brammer used a similar 51% / 49% pacing to acquire Belgian bearing and power transmission distributor, Aandrijvingen Ramaekers NV. With the acquisition, Brammer became Belgium's largest bearing and power transmission distributor.