BRAMMER plc Acquires Remaining 51% Interest In KNS Aandrijftechniek B.V. Holland

Brammer, the European industrial services group, today announces that it has acquired the remaining 51% interest in KNS for a consideration of € 5,801,635 to be paid in two instalments on 5 January, 2004 ( € 3,000,000 ) and 2 July, 2004 ( € 2,801,635 ).

The highlights of the announcement are:

· Brammer Industrial Services’ operations in the UK, France, Germany, Spain, Benelux and Austria form the largest specialist business supplying bearings, power transmission products and related value added services, in the EU market. · KNS, whose business is similar to that of Brammer, operates in the Netherlands, Belgium, Austria and Germany. Its customer base includes a broad range of industrial companies and it is an authorised distributor for some of the world’s leading bearing manufacturers, a number of whom are common to Brammer. · Brammer has established a close relationship with KNS and has identified further opportunities to expand its product range and branch network. In particular, Brammer will continue to support KNS in the development of its power transmission business, an important growth area. · The Acquisition will strengthen the position of Brammer in dealing with pan-European customers and is another big step forward towards a full European coverage. · The vendor of the business, Mr. Nico Schön, will remain with the business as Managing Director. Commenting on the acquisition, Mr Ian Fraser, Brammer’s Chief Executive, said:

“Our customers and suppliers are increasingly looking for Europe-wide support. This is a significant strategic move, giving us coverage in another important European market. It strengthens our position as a pan-European distributor and increases our potential for economies of scale and enhanced market standing.”

Further information

Further information on the business is available from the KNS website,

Brammer plc
0161 928 3363

David Dunn, Chairman
Ian Fraser, Chief executive
Issued by:
Citigate Dewe Rogerson
020 7638 9571

Martin Jackson




The Board of Brammer plc (“Brammer”) announces that it has acquired the remaining 51% interest in KNS Aandrijftechniek B.V. (“KNS”). The price of € 5,801,635 is based on KNS average profits for 2000, 2001 and 2002. Brammer will also assume borrowings of € 4.2 million. € 3,000,000 of the consideration is payable at the 5 January, 2004 the remaining amount at the 2 July, 2004.

In 2002 KNS made profits before tax and extraordinary items of € 1.7 million (£1.1 million) on sales of € 26.9 million (£17.5 million). Net assets at 31 December 2002 were € 4.6 million (£3.0 million).

Information on KNS

KNS is the holding company for a group of companies operating in the Netherlands, Belgium, Austria and Germany. The principal business is the sale of bearings and other industrial consumables to a broad range of industrial companies. Approximately 93% of the group’s sales are in the Benelux and it is estimated that KNS, which in most areas trades under the name AKN, has a 10% share of the Dutch bearing market.

The KNS group is an authorised distributor for some of the world’s leading bearing manufacturers. A number of its key suppliers, such as NSK and Timken, are common to Brammer.

KNS, whose headquarters are in Haarlem, has six branches in the Netherlands and three branches in Belgium, together with branches in Austria and Germany. Over the last few years KNS has expanded rapidly and the newer branches are not yet profitable.

Brammer has acquired the remaining 51% interest to further strengthen its position as the number one partner for pan-European customers.

Background to and reasons for the acquisition of KNS

Brammer’s principal distribution subsidiaries are:

BSL in the United Kingdom
THF in Germany
Roulement Service in France
Rodamientos USA in Spain

In most of these markets Brammer is the largest specialist distributor of bearings and power transmission products.

Brammer believes that its suppliers are increasingly developing Europe-wide distribution policies. In addition, its customers are increasing their tendency to buy on a European basis. This presents an opportunity for a limited number of pan-European distributors to emerge. Brammer’s strategy is to expand geographically across Europe, thus keeping in step with these market developments. This strategy should produce benefits through both economies of scale and enhanced market standing.

KNS has a similar operating philosophy to Brammer but the range of products carried and the suppliers represented is narrower and accordingly Brammer will seek to support the developing growth opportunities. Benefits should also be obtained by improvements in stock turn and service levels.

In the rapidly changing European market, KNS offers an opportunity for Brammer to expand its distribution coverage in a market it understands well.