Acquisition: German aviation, loading systems group Meyerinck

We are pleased to announce the acquisition of Meyerinck Group, based in Fernwald, Germany, a leading international manufacturer of refuelling and industrial loading systems. The transaction is effective as of November 1, 2008.

Established forty years ago, and based in Fernwald, Germany, Meyerinck designs and manufactures advanced refuelling and loading systems for the supply of aircraft fuel, and chemical and petrochemical liquids.

Meyerinck’s low maintenance and labour efficient systems supply commercial, military, rotary and fixed wing aircraft, and tanker vehicles at airbases and airports around the world. Meyerinck products are used at some 150 airbases and tanker farms, including Ramstein Air Force Base in Germany, Edwards Air Force Base in the United States, Misawa Airbase, Japan, Chung Joo Airbase, South Korea; and at Spain’s Murcia – San Javier Airport, and Schiphol and Munich airports.

In the chemical and petrochemical industries, Meyerinck provides systems that support customers such as Bayer, Linde and BP, with the loading and unloading of a wide range of liquids. Meyerinck’s stainless, steel-based technologies, work reliably with the vast majority of chemicals – including bio-diesels, ethanol, liquid petroleum gases, acids, and many other compounds – moving chemicals within facilities, to and from rail, road, and ship or barge.

Over the past three years, Meyerinck has generated sales of between EUR 5.0 million and EUR 7.0 million, and its future business potential is in-line with our own expectations. Consistent with its acquisition philosophy, we expect to further develop the Meyerinck business by supporting the current management team and employees.

As of November 1, 2008, Meyerinck will operate under the name Cavotec Meyerinck GmbH.

Acquisition: Dabico Group

We are pleased to announce that Cavotec MSL has acquired the Dabico Group, a leading international manufacturer of airport ground support equipment.

From its US and UK-based manufacturing operations, Dabico engineers in-ground airport supply systems that provide safe and efficient delivery of aviation fuel and utilities to all types of commercial and military aircraft. Over the past 40 years, Dabico has supplied these systems to aircraft manufacturers, airlines and airports all over the world.  Commercial customers include, among others, The Boeing Company, Singapore Airlines, American Airlines, Lufthansa, JAL, British Airways, and international airports in New York, Los Angeles, Beijing, Hong Kong, and Auckland. Defence customers include Andrews AFB / Air Force One, the US Coast Guard, Edwards AFB, Ramstein AFB, and the Royal Saudi Air Force.

In 2007, Dabico generated sales of USD 13.2 million and levels of profitability in-line with our targets.  Consistent with its acquisition philosophy, we expect to further develop the Dabico business by supporting the current management team and employees, with Bill Fischer as President (US) and Gary Matthews as Managing Director (UK). Going forward, Dabico will operate under the name of Cavotec Dabico.