NACKA STRAND, Sweden, March 9, 2004 (PRIMEZONE) -- Hexagon has agreed to acquire the South Korean company Korea ErFa Systems Eng. Co metrology business. Hexagon will continue the operations in a new legal entity named Hexagon Metrology Korea. The Company will initially have a sales turn over of 1.3 MUSD consisting of commissions from sales of new Coordinate measuring machines and after market services. It will have 9 employees.
ErFa systems have represented Hexagon Metrology's products in Korea over the last few years. The Machine sales in Korea amounted to 4 MUSD in 2003. The market is growing in new machine sales as well as after market services. Hexagons Metrology's software PC-DMIS is now available in Korean, which increases the possibility for a profitable expansion.
The ErFa systems acquisition should be viewed in the light of Hexagon Metrology's reinforcement of its global presence in new machine sales as well as the very important local after market. The Acquisition is concluded as of February 27th 2004 and will contribute to Hexagons earnings from the start.
Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. The operation is divided into four business areas: Hexagon Automation, Hexagon Engineering, Hexagon Metrology and Hexagon Polymers. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 GSEK p.a.
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