Concentric acquired by Haldex of Sweden

22 February 2008

Concentric plc. the leading manufacturer of oil, fuel and water pumps for medium and heavy diesel engines, has been acquired by Haldex, the Swedish-based automotive technology group.

Concentric was previously owned by Bridgepoint, a leading European provider of private equity. The acquisition is subject to regulatory approval in Germany and is expected to be complete by the end of the first quarter of 2008. Concentric will join Haldex's Hydraulic Systems Division and its Chief Executive Ian Dugan will take over as head of the enlarged division. Ian Dugan, commented: “We are very excited about becoming part of Haldex. In terms of brands and market position, both Haldex and Concentric embody similar core values of quality and technological innovation. Moreover, the two businesses are complementary in terms of product, with Haldex specializing in hydraulic pumps and Concentric in engine pumps, which means increased potential for both. Within Haldex, we will be able to continue and further develop Concentric's commitment to innovation and an expanding global presence. Our customers will benefit from the strong focus of both companies on technology leadership, particularly in environmental values and energy efficiency.”

John Redwood PC MP, Chairman of Concentric, said today: "I am delighted that Haldex has given such a vote of confidence to the Concentric team. They like our products and technology, they will benefit from our global footprint and they want our senior management to play a prominent role in an enlarged business. Haldex will be an excellent new partner that can help us take Concentric to the next stage in its expansion and development. I would like to to thank everyone in the group for achieving such good results by providing quality products that meet the need for high specifications in the modern engine industry."

Joakim Olsson, CEO of Haldex, added: “The Concentric management team will add valuable expertise to Haldex Hydraulic Systems. With this transaction, Haldex Hydraulic Systems has the foundation for being a truly leading business internationally with a niche product offering in applications for diesel engines with a strong focus on emissions reduction and fuel efficiency.”

Haldex operations are divided into four business areas: Commercial Vehicle Systems (braking for heavy trucks, trailers and buses), Hydraulic Systems (hydraulic pumps, power systems, fuel transfer pumps), Garphyttan Wire (advanced spring wire for combustion engines and transmissions) and Traction Systems (electronically controllable or AWD systems for four-wheel drives). The group is building up an increasingly global presence in order to meet demand and there are already 23 production facilities in Brazil, China, Germany, Great Britain, Hungary, India, Mexico, Sweden and the USA.

Concentric PLC is a major supplier to the world’s diesel engine manufacturers, supplying oil, water and fuel transfer pumps, as well as coolant pumps and fan support brackets for transmissions and compressors. End applications range from trucks and buses to materials handling, construction, agricultural and off-highway machinery. There are factories in the UK, USA, India and China and the group centre of excellence for design, development and engineering is located in Birmingham. Concentric is approved to ISO/TS16949, the automotive industry standard, worldwide and the UK operation also holds the ISO14001 environmental standard.