WILO EXPANDS

WITH EMUACQUISITION

Wilo AG is taking over EMUSubmersible Pumps Groupbased in Hof, Germany fromEtschel & Meyer GmbH +Co KG.

Founded in 1949, EMUsupplies pumps and technicalmachinery for municipal andindustrial water supply as wellas for sewage disposal andtreatment. The EMU group,which includes EMUUnterwasserpumpen GmbHand EMU Anlagenbau GmbHtogether with 11 other associ-ated companies, generatedprovisional sales of �50 mil-lion in 2002 and has approxi-mately 500 employees world-wide.

Wilo, which specializes inpumps and pump systems forbuilding services applications,has an annual turnover of�535 million and employs3050 people. The Wilo groupconsists of the independentsubsidiaries Pompes SalmsonSAS and Wilo-SalmsonComponents SAS, both inFrance, and Wilo Pumps Ltd,which is based in South Korea.

“This acquisition has nowgiven us the foundation forjoining the market leaders forsewage pumps and sewagetechnology,” said MichelLaroche, the CEO of Wilo AG.The company is planningambitious growth for its new

acquisition, using Wilo’sestablished worldwide salesorganization for the marketingand sale of EMU’s productrange. According to Laroche,strong growth should lead tothe future expansion of theproduction plant in Hof.Laroche also believes that bothEMU and Wilo will benefitfrom research and develop-ment synergies.

The existing EMU man-agement team, which consistsof Gerhard Etschel (Sales/Marketing), Klaus Hagen(Engineering) and RainerEtschel (Finance), has beenexpanded with the addition of Carsten Krumm (SalesCoordination), Otto Northe(Finance/Controlling/IT) andFrank Kaiser as chairman ofthe management board. Themanagement of the EMU subsidiaries and sister compa-ny will remain unchanged,however.

“With Wilo AG, we foundthe best partner worldwide torealize our expansion goals,”said Gerhard and RainerEtschel. They said it was anunanimous decision of theboard to go with Wilo AG, aGerman partner.

Etschel & Meyer’s tradi-tional deep well drilling activi-ties, run by E+M Bohr GmbH, based in Hof and E+M Bohr- und BrunnenbauGmbH of Leipzig, are unaf-fected by Wilo’s acquisition ofEMU.

The transaction still needsto be approved by theMonopolies Commission.

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National Oilwell has boughtthe Mono pumping productsbusiness from HalliburtonEnergy Services through thepurchase of all of the out-standing stock of MonofloInc in the USA and MonoGroup in the UK.

Mono makes power sec-tions for downhole drillingmotors, downhole artificial liftpumps, progressive cavityfluid transfer pumps, grindersand screens, and services theoilfield, industrial and agricul-tural markets. Headquarteredin Manchester, UK, the com-pany has additional facilitiesin the USA and Australia.

National Oilwell, whichspecializes in major mechani-cal components for land andoffshore drilling rigs, com-plete land drilling and wellservicing rigs, and downholeproducts, expects to con-tribute significant additionalvolume to the Mono business.The company believes that theacquisition will add aboutUS$18 million to its annualoperating profits. In 2002,Mono generated approx-imately US$80 million in revenues.

Pete Miller, NationalOilwell’s CEO, believes thatthe Mono pumping productsbusiness is an excellent

addition to his company’snon-capital equipment busi-ness. “Not only is it an out-standing fit with our down-hole business, it also providessignificant benefits to ourDistribution Services Groupand Mission products busi-ness,” said Miller. He expectsthat the Mono acquisition willalso improve margins andoperating profit for NationalOilwell’s non-capital businessthrough the in-house manu-facturing capability of drillingmotor power sections and pro-gressive cavity pumps.

National Oilwell says itwill issue 3.2 million shares ofits Common Stock and payUS$22.65 million in cash forthe Mono business, for a totalconsideration of approximate-ly US$87 million.

The sale of the Monopumping business is part ofHalliburton’s previouslyannounced plan to divest itsnon-strategic assets.

HALLIBURTONSELLS MONO

PUMPING BUSINESS

COMMENTThe For Sale sign finallycomes down for Mono,removing the sense ofuncertainty that has hungover the pump maker fortoo long. ■

CONTENTS NEWS 1,16 MARKET PROSPECTS 2–4 COMPANY PROFILE 5–6COMPANY WATCH 7–9 FEATURE 10–11 PEOPLE 12 E-BUSINESS 12 IN BRIEF 12,13 ORDERS 13DIVIDENDS 13 NPD 14 ECONOMIC REVIEW 14 DIARY 15

JANUARY 2003ISSN 1359-6128

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