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Legris Industries Group aims for focus on core competencies in industrial equipment and turnkey plant engineering, and is considering an offer for its historic Legris division. (19/06/2008)

Legris Industries has received an offer from Parker Hannifin Corp., an international motion and control manufacturer, for its Legris division. This proposal, which is consistent with the new strategic direction adopted by Legris Industries Group, is currently the object of a procedure to inform and consult the Central Works Council of Legris SA. The potential acquisition remains contingent on the approval of regulatory authorities in the countries concerned.

Legris Industries is today clearly successfully deploying its business development model to accelerate industrial performance. For this, it has over time developed methods, tools and principles of business support, leveraging its expertise to back growth and value creation.

With three of its divisions and two-thirds of its sales now centered on competencies in industrial equipment and in turnkey plant engineering, Legris Industries has decided to step up development in this direction and deepen related expertise. This also reflects the added potential for cross-fertilization within the Group in its new form, and increased scope for pooling of resources among its Savoye, Keyria and Clextral divisions.

At the same time, Legris Industries has decided to consider the Parker Hannifin offer for its Legris division. Looking to the future, Legris Industries considers that Legris stands to gain significant benefits from a tie-up with a major industrial firm specialized in its sector, able to make most of the division's strengths and offer an even more favorable environment for the success of new stages in its development. This is why Legris
Industries considers Parker’s offer to be of interest.

An international manufacturer with a workforce of 57,000 generating sales of $10.7 billion in 2007, Parker Hannifin is the world leader in motion and control including fluid control and handling systems for applications in hydraulic, pneumatic, electromechanical, filtration and other technologies. The planned tie-up offers Legris real opportunities to accelerate development with the help of added resources, particularly Parker's sales coverage with end-users. Complementary product offerings and geographical presence, as well as similar corporate cultures, make for added appeal.

For Legris Industries the proposed transaction will provide additional resources to amplify the development of its operations in industrial equipment and turnkey plant engineering for specialized industries. These are currently represented by Savoye, a provider for warehousing and logistics; Keyria, serving the building materials sector; and Clextral, serving clients in food-processing and special chemicals.

Hugues Robert, Chief Executive Officer of Groupe Legris Industries, comments:

“ If this potential project goes ahead, we will have good reason to be proud not only of our success in making Legris the world leader in its particular field, but also in arranging a tie-up with the world leader for the sector as a whole, on terms that are highly favorable from both the technical and human points of view. We owe this to both the strengths of the Legris Industries business model and the talent of the Legris workforce. I see this as both a magnificent tribute to the past and an extraordinary promise of further progress and long-term success.”