Purchaser Analysis

March 2014

Purchaser Analysis
Contents
SECTION 1: SECTION 2: SECTION 3: 7 RECOMMENDED COMPANIES 13 RESERVE COMPANIES 47 REJECTED COMPANIES

Purchaser Analysis
Recommended Companies (7)

COMPANY NAME
FREUDENBERG GMBH ITRAN-TOMPKINS RUBBER CORP LORD CORP PHOENIX AG SEMPERIT HOLDING AG TOTAL SA TRELLEBORG AB

COUNTRY
Germany USA USA Germany Austria France Sweden

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: FREUDENBERG GMBH Germany www.freudenberg.com Max Kley Mergers & Acquisitions Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Freudenberg is a manufacturer of elastomers and plastics such as mechanical seals, moulded plastic components, anti-vibration products, non-wovens, special lubricants and floor coverings. It serves the automotive, transportation, household products, footwear, medical, construction, engineering, textile and IT industries. The Group has over 28,000 employees and operations in 44 countries. In June 1999, it merged its anti-vibration product operations with those of Phoenix AG to create a joint-venture called Vibracoustic. Share price movement: N/A N/A N/A N/A Dec-01 2,681 142.3 N/A Dec-00 2,705 130.0 Dec-99 N/A N/A

Freudenberg's Simrit division is a manufacturer of hydraulic and pneumatic components, hydro-accumulators, rubbers seals and rings, diaphragms, bellows, elastomer composite parts, precision mouldings and vibration control products used in the construction, electrical and mechanical engineering, energy, food, healthcare, materials handling and production engineering industries. In 2001, UK subsidiary Freudenberg Holdings Ltd had a turnover of 12.1 million and made pre-tax profits of 0.6 million.

Acquisition criteria:

In February 2004, Max Kley stated that Freudenberg is acquisitive and interested in acquisitions involving manufacturers of sealing components, rubber products, non-wovens, household products and special lubricants that would reinforce the position of its existing businesses. The Group is likely to be selective in its acquisitions and is primarily interested in opportunities valued at between 10 million and 100 million.

Previous relevant deal summary: Date Jul-02 Target NuSeals Inc - US manufacturer of sealing products Deal value N/A PE ratio N/A

Strategy:

Freudenberg is focused primarily on acquisitions in its core areas in Europe and the USA, while refraining from entering any new markets or pursuing diverse revenue streams.

Jul-02

Transcom Inc - US manufacturer of automotive components

N/A

N/A

Conclusion:

Although Max Kley was unaware of any potential capacity at Freudenberg's Lutterworth plant, our IMAP partners In Germany have an existing relationship with the Group, believe that it would be particularly interested in Silentbloc and recommend approaching it with this opportunity.

Jul-99

Farnam Mellor Sealing Systems Inc US gasket manufacturer

N/A

N/A

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: ITRAN-TOMPKINS RUBBER CORP USA www.itran-tompkinsrubber.com Rich Docherty President Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Itran-Tompkins is a manufacturer of engineered custom-moulded rubber and elastomeric products including rubber-to-metal bonded assemblies for the automotive, pharmaceutical, precision engineering, process engineering and railway industries. Its range of services include rubber mixing and compounding, compression, transfer and injection moulding. The Company's customers include C&D Power, Eastman Kodak, Homelite, IBM, Mercury and Pitney Bowes. Share price movement: N/A N/A N/A N/A Dec-02 62.0 3.9 N/A Dec-01 49.7 2.2 Dec-00 45.0 1.9

Acquisition criteria:

In February 2004, Rich Docherty stated that Itran-Tompkins is acquisitive and interested in any manufacturers of elastomeric and rubber-to-metal bonded components such as vibration dampers, mounts, bumpers, valve diaphragms, grommets, seals and bellows for the automotive, pharmaceutical, precision engineering, process engineering and railway industries. Any targets must have blue-chip customers and be valued at between 2 million and 15 million.

Previous relevant deal summary: Date Apr-02 Target Belko Corp - US manufacturer of moulded and extruded rubber products Deal value N/A PE ratio N/A

Strategy:

No stated strategy to report.

Conclusion:

Rich Docherty stated that Itran-Tompkins has considered acquisitions outside the US in the past and that any opportunities for manufacturing to be transferred to its plant in New Jersey would be considered.

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: LORD CORP USA www.lord.com Richard McNeel / Steve Brockman Chief Executive Officer / Vice-President, External Growth & Acquisitions Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Lord is a designer and manufacturer of adhesives, polyurethane coatings and bonded elastomer assemblies. Its products include motion and noise control equipment, antivibration and anti-shock components, rubber-to-metal bonded isolators, couplings and bearings, fluid-filled dampers, bushings and mounts, elastomeric rail fastening systems, fender mounts, grommets and seals for the aerospace and aviation, automotive and heavy truck, construction, defence, electronics, engineering, marine, process and railway industries. It has nine manufacturing plants in the USA and has operations in Japan, Brazil, the UK, Korea, China and Mexico and employs over 2,200 employees worldwide. UK subsidiary Lord Corp Europe Ltd is engaged in the sale and distribution of the Group's products. In 2002, it had a turnover of 13.6 million and made pre-tax profits of 2.1 million. Share price movement: N/A N/A N/A N/A Dec-02 222.0 6.4 N/A Dec-01 211.7 13.2 Dec-00 N/A N/A

Acquisition criteria:

In February 2004, Steve Brockman stated that Lord is in the process of devising a new plan for international growth. It is therefore interested in acquisition opportunities involving manufacturers of rubber and elastomeric components used in vibration, shock, motion and noise control in the automotive, defence and transportation industries, especially for aircraft, off-road and agricultural vehicles, trains and trucks. It would consider opportunities valued at between 10 million and 50 million.

Previous relevant deal summary: Date Aug-01 Target BalaDyne Corp - US manufacturer of vibration dampening equipment Deal value N/A PE ratio N/A

Strategy:

Lord's acquisition of Metal Gomma SpA, now called Lord Metal Gomma, allowed it to grow its worldwide vibration, shock and noise control manufacturing operation and it has since been supplying the business with sales and technical support to facilitate its growth. We would recommend approaching Lord with this opportunity as Steve Brockman stated that the Group would consider transferring any acquired manufacturing facilities to its existing plants as long as there were sufficient product synergies.

Mar-00

Metal Gomma manufacturer of products

SpA technical

Italian rubber

N/A

N/A

Conclusion:

Feb-99

Oberflaechenchemie GmbH - German manufacturer of adhesives and coatings

N/A

N/A

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: PHOENIX AG Germany www.phoenix-ag.com Hans-Joachim Zwarg Chief Financial Officer Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Phoenix is engaged in the manufacture of acoustic systems and rubber products for the automotive, railway, construction and industrial markets. Its products include airconditioning hoses, coolant hoses, fuel hoses, sound and vibration insulation systems, coated fabrics, conveyor belts, dredging hoses, elastomeric products, building extrusions, hydraulic hoses, oil exploration hoses and waterproof sheeting. It also operates rubber compounding plants. The Group employs over 10,000 people and has operations in Europe, North America and Asia. WestLB and Daun, a German investment firm, own nearly 40% of Phoenix. In June 1999, Phoenix merged its anti-vibration product operations with those of Freudenberg GmbH to create a joint-venture called Vibracoustic. Share price movement: Frankfurt (PHO) 10.16 8.9 103.7 Dec-02 799.6 2.0 Dec-01 801.0 7.7 Dec-00 685.6 14.8

Acquisition criteria:

In December 2003, Hans-Joachim Zwarg stated that Phoenix is currently selling two of its non-core manufacturers of elastomeric products for the building industry. However, the Group has adopted a new strategy following the recent acquisition of a 24.9% stake by Daun & Cie. It would therefore be interested in selective acquisitions involving businesses that would generate cost-savings and synergies with the rest of the Group. Areas of particular interest include of anti-vibration and insulation components, fluid handling products, conveyor belts, engine mounts and other rubber-to-metal bonded products. Phoenix is planning to double its revenues by 2005 through acquisitions and the relocation of some of its manufacturing operations to China, the Czech Republic, Hungary, India, Malaysia and Poland. Although Phoenix is currently focusing on the disposal of its non-core businesses, the Group may be interested in all or part of Silvertown.

Previous relevant deal summary: Date Jul-00 Target Unipoly SA - Dunlop oil and marine hose manufacturing subsidiary Deal value N/A PE ratio N/A

Strategy:

Apr-00

K&B Beattie Ltd - manufacturer of hose systems for the oil industry

N/A

N/A

Conclusion:

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: SEMPERIT HOLDING AG Austria www.semperit.at Rainer Zellner Chief Executive Officer Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Semperit is a manufacturer of a wide range of moulded rubber products including antivibration components, cables, conveyor belts, escalator handrails, hoses, pipe fittings, profiles, rubber gloves, rubber sheeting, sponge rubber and seals. Its products are used in automotive, leisure, mechanical engineering, medical, railway and transportation applications. Share price movement: Vienna (SEM) 14.56 12.3 202.2 Dec-02 304.0 28.5 Dec-01 275.6 26.5 Dec-00 257.2 22.5

Semperit's Semperform division is engaged in the manufacture of moulded rubber and plastic industrial products including anti-vibration components, escalator handrails and profiles. Its Sempertrans division is engaged in the manufacture of steel reinforced conveyor belts and cable carcasses for cable car systems.

Acquisition criteria:

In February 2004, Rainer Zellner stated that Semperit is currently focusing on transferring its manufacturing operations to lower-cost countries in Eastern Europe and the Far East. However, the Group has a history of making niche, bolt-on acquisitions and would be interested in any opportunities involving manufacturers of rubber belting and sheeting, as well rubber components used in transportation applications. Any acquired manufacturing operations would be considered for relocation provided that the distribution network and client relationships were unaffected. Semperit is focused on delivering year-on-year sales and profit growth, a trend that it has maintained for 13 years.

Previous relevant deal summary: Date Oct-02 Target Phoenix AG - Knapheide industrial hydraulic hose manufacturing division Deal value N/A PE ratio N/A

Strategy:

May-02

Stomil Belchatow SA - Polish manufacturer of rubber products

5.6

18.0

Conclusion:

Our IMAP partners in Austria have an on-going relationship with Semperit and are aware that the Group is experienced in both relocating high-cost manufacturing operations and spinning-off unwanted parts of larger acquisitions.

Nov-00

Nirlon Ltd - Indian manufacturer

conveyor belt

N/A

N/A

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: TOTAL SA France www.total.com Jean-Luc Falaut Strategic Planning Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Total, formerly Total Fina Elf SA, is the worlds fourth largest oil and gas business engaged in the exploration, production, shipping, refining and sale of oil and gas, as well as chemical formulation and the manufacture of a wide range of polymers, resins, adhesives and elastomers. The Group has over 121,000 employees and operations worldwide. Share price movement: Paris (FP) 143.2 13.6 62,588 Dec-02 72,649 7,128 Dec-01 74,405 9,008 Dec-00 80,954 9,819

Total Fina Elf's Atofina division is a leading manufacturer of base chemicals, commodity polymers, adhesives, performance polymers and speciality chemicals. Subsidiary Hutchinson SA is engaged in the production of rubber products for the automotive, electronics, aerospace, consumer, leisure, transport, packaging, construction and civil engineering industries in Europe, North America and Asia. Its brands include Barry Controls, Claropan, Mapa Spontex, Paulstra, Stop Choc and Vibrachoc.

Acquisition criteria:

In December 2003, Jean-Luc Falaut stated that Hutchinson is acquisitive and interested in any opportunities involving manufacturers of elastomeric mountings and bearings used in the automotive, marine, aerospace, defence, power generation, railway and medical equipment sectors. It would particularly interested in opportunities that would fit with its Barry Controls, Claropan, Paulstra and Vibrachoc brands and allow it to consolidate its leading position in the European elastomeric products market.

Previous relevant deal summary: Date Jun-00 Target Applied Power Inc - Barry Wright antivibration component manufacturing division Harvard Industries Inc - Kingston Warren automotive sealing systems manufacturing division Deal value N/A PE ratio N/A

Strategy:

Hutchinson's acquisition of Barry Wright Corp in June 2000 increased its range of antivibration, fluid transfer, sealing and adhesive products for aerospace, railway and industrial applications. Although Jean-Luc Falaut declined to comment on Hutchinson's current production capacity, we believe that it would be interested in all or part of Silvertown.

Sep-99

69.5

10.2

Conclusion:

RECOMMENDED COMPANIES
Company: Country: Web Site: Contact: Position: TRELLEBORG AB Sweden www.trelleborg.com Frederik Meuller Vice President, Business Development Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Trelleborg is a leading manufacturer and supplier of polymer-based products for the automotive, marine, railway, infrastructure, construction and other industries. Its range of products includes anti-vibration, noise-damping, expansion joint, fluid transfer, thermoplastic, marine fender, tunnel sealing, dredging, protective clothing and precision sealing components. The Group has over 21,000 employees in 40 countries and operates through its Automotive, Wheel Systems, Engineered Systems, Building Systems and Sealing Solutions divisions, including Busak & Shamban, a leading manufacturer of industrial sealing and bearing systems. Subsidiary Trelleborg Industries UK Ltd is engaged in the design and manufacture of rubber-to-metal bonded engineering products, anti-vibration mountings and suspension components for railway, marine, off-highway, industrial and power generation applications. Its head office, technical centre and R&D operations are based in Leicester. In 2001, it had a turnover of 20.5 million and made pre-tax profits of 2 million. Share price movement: Stockholm (TRELB) SEK 145.0 17.3 871.7 Dec-02 1,402 52.9 Dec-01 1,508 56.8 Dec-00 1,083 89.1

Acquisition criteria:

In December 2003, Frederik Meuller stated that having recently completed several acquisitions, Trelleborg will be focusing on bedding these down in the first half of 2004. However, the Group is already starting to explore future potential acquisitions across all of its divisions and would be particularly interested in manufacturers of polymeric and elastomeric products for the infrastructure, marine, defence and industrial/power generation sectors. Ideally, it would prefer businesses with a turnover between 10 million and 50 million occupying leading market positions, having their own brands and demonstrating some organic growth. Trelleborgs strategy is focused on occupying either the first, second or third position in each market in which it operates. It therefore makes acquisitions in order to improve its position in terms of product range, market share, growth and competitive advantages. Although Frederik Meuller is not aware of Trelleborg's current capacity issues, it currently operates a large facility in Leicester and we therefore believe that the Group would be an ideal purchaser for Silvertown.

Previous relevant deal summary: Date Dec-03 Target Metzeler Automotive Profile Systems GmbH - automotive hose system manufacturing division Deal value 21.2 PE ratio N/A

Strategy:

Nov-03

Epwin Group Ltd - DJ Profiles sealing component manufacturing division

N/A

N/A

Conclusion:

Jul-03

Smiths Group plc - polymer sealing solutions division

495.0

N/A

Purchaser Analysis
Reserve Companies (13)

COMPANY NAME
BOETTCHER HOLDINGS GMBH CF GOMMA SPA DELMON INDUSTRIE SA FENNER PLC GROVE INDUSTRIES LTD GUMMI METALL TECHNIK GMBH HEXAGON AB HUNTER RUBBER CO LTD MALONEY TECHNICAL PRODUCTS INC PHOENIX MEDICAL GROUP LTD SACRED SA SANDER INDUSTRIES INC WOCO GMBH

COUNTRY
Germany Italy France UK UK Germany Sweden UK USA UK France USA Germany

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: BOETTCHER HOLDINGS GMBH Germany www.boettcher.de Horst Loosen / Michael Rodgers Chairman / Finance Director, Bottcher Airedale Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Boettcher is a manufacturer of rubber-based cylinders, rollers and handrails used primarily in the steel, plastics, paper, textile, wood-processing and printing industries. Its brands include TechGrip, RollerTech, Febolith, Febograv, Feboflex, Febopress and Febopur. The Group has 12 production facilities in Germany, France, Italy, Austria, Switzerland, Poland, Spain and the UK. Share price movement: N/A N/A N/A N/A Dec-01 121.7 N/A N/A Dec-00 121.0 N/A Dec-99 137.0 N/A

UK subsidiary Boettcher Airedale Ltd is engaged in the manufacture of rubber rollers for the canning, food, printing, paper and textile industries. In 2001, it had a turnover of 2.7 million and made pre-tax losses of 0.5 million.

Acquisition criteria:

We are aware that although Boettcher is not actively seeking any acquisitions at the present, it would consider any suitable opportunities in the UK. It would be primarily interested in businesses that would expand the Group's product range or that would offer synergies with its existing operations. Any UK-based target's manufacturing operations would probably be transferred to the Group's existing plants in Shipley and Ebbw Vale.

Previous relevant deal summary: Date Aug-02 Target Airedale Rollers Ltd - manufacturer of rubber rollers Deal value N/A PE ratio N/A

Strategy:

No stated strategy to report.

Conclusion:

We are aware that Boettcher has previously showed interest in the handrail manufacturing business and consider the Group to be a relevant purchaser for that business.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: CF GOMMA SPA Italy www.cfgomma.com Paolo Cingia / Renato Faita Managing Director / Finance Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: CF Gomma is a leading European manufacturer of rubber products for automotive and marine industries. Its products include expansion joints, anti-vibration components, suspension systems, fluid transfer systems such as brake hoses and low pressure hoses, technical rubber compounds, dock fenders and sealing components. The Group employs over 5,000 people and operates 14 plants in Italy, France, Germany, the USA, Poland, Turkey, Argentina and Brazil. Share price movement: N/A N/A N/A N/A Dec-01 357.9 -2.1 N/A Dec-00 350.0 17.9 Dec-99 179.3 5.7

Acquisition criteria:

In January 2004, Paolo Cingia stated that CF Gomma is acquisitive and is interested in any opportunities involving manufacturers of technical rubber-based products and elastomeric components for the automotive, marine and industrial sectors. It is primarily interested in businesses with strong, reliable routes to market and with a variety of customers. The Group is primarily interested in opportunities valued at between 3 million and 15 million.

Previous relevant deal summary: Date Sep-01 Target Ziliani SpA (90%) - Italian manufacturer of automotive rubber profiles Deal value N/A PE ratio N/A

Strategy:

No stated strategy to report.

Nov-99

PSA Peugeot Citroen SA - La Barre Thomas elastomer components manufacturing subsidiary Paguag GmbH - German manufacturer of rubber moulded products

N/A

N/A

Conclusion:

Although CF Gomma does not currently have any manufacturing operations in the UK, we are aware that the Group has previously considered UK acquisitions and may be interested in parts of Silvertown.

Dec-98

N/A

N/A

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: DELMON INDUSTRIE SA France www.delmon-industrie.com Pierre Delmon President Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Delmon is a manufacturer of rubber-moulded, elastomeric and thermoplastic components for the aerospace, automotive, commercial vehicle, high technology, home appliance, mechanical engineering and railway industries. Its range of products includes anti-vibration components, bellows, dampers, expansion joints, mountings and seals. The Group employs over 700 people and has four manufacturing plants in France and Spain. Share price movement: Paris (DELM) 17.82 28.3 14.7 Dec-02 35.9 1.4 Dec-01 41.3 2.8 Dec-00 43.7 3.2

Acquisition criteria:

Our IMAP partners in France are aware that Delmon is interested in any opportunities involving manufacturers or rubber or elastomeric products that would allow the Group to maintain a leading position its core markets.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

No stated strategy to report.

Conclusion:

Although Delmon is a quoted businesses it remains under the control of Pierre Delmon and we would recommend approaching the Group with this opportunity.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: FENNER PLC UK www.fenner.co.uk Mark Abrahams Chief Executive Officer Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Fenner is a leading manufacturer of reinforced polymer products including PVC, fabric, thermoplastic elastomer, rubber and steel-reinforced precision timing belts, reinforced ducting, high-temperature hoses, composite pulleys, sprockets and bearing housings, conveyor guide systems and belt-chain tensioners. Its products serve customers in the air conditioning and ventilation, aggregates, electrical and mechanical equipment, food processing, heavy truck and bus, machine tool, mining, pharmaceutical and power generation industries. Its brands include Fenner Dunlop, Fenner Drives, BTL, Scandura, Georgia Duck and James Dawson. Subsidiary James Dawson Ltd is a manufacturer of silicone hoses used in diesel engines, moulded components used in driving and conveying systems, industrial belting, rubber footwear and a range of other rubber products such as seals and diaphragms, pneumatic clutch glands, silicone gasket sheets, rubber sheet mats, inflatable pipes, silicone treads and reinforced rubber treads. In 2002, it had a turnover of 12.4 million and made pre-tax profits of 1.6 million. Share price movement: London (FENR) 101.0p 8.9 103.4 Aug-03 248.5 -5.2 Aug-02 232.2 5.5 Aug-01 166.4 12.3

Acquisition criteria:

In recent conversations Mark Abrahams stated that although Fenner is acquisitive, the Group is more likely to make acquisitions in Continental Europe rather than the UK. It would be particularly interested in manufacturers of drives, reinforced polymer products and belting, with particular attention given to the targets' distribution network.

Previous relevant deal summary: Date Oct-02 Target Eagle Belting Co - US manufacturer of industrial belting Deal value 2.9 PE ratio N/A

Strategy:

Fenner posted a loss in 2003 due to a restructuring programme that was focused on returning its recent acquisitions to profitability. However, the Group recently stated that it had seen significant improvement in its belting and specialist polymer operations. Despite the fact that Fenner is reluctant to make acquisitions in the UK, we would consider the Group as a relevant purchaser for the footwear manufacturing operations.

Oct-01

Unipoly SA - Enerka belt manufacturing division

47.5

N/A

Conclusion:

Jan-98

Valley Belting Services Pty Ltd Australian conveyor belt manufacturer

0.6

N/A

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: GROVE INDUSTRIES LTD UK www.united-polymers.co.uk Les Litwinowicz Group Business Development Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Grove Industries is a group of engineering businesses backed by Close Brothers Private Equity. Its main trading business is United Polymers, a manufacturer of elastomeric and thermoplastic seals and gaskets, as well as composite metal, rubber and synthetic moulded components for the automotive, electrical, leisure and domestic appliance industries. The Group has manufacturing operations in England, Wales and the Czech Republic. Share price movement: N/A N/A N/A N/A Dec-02 N/A N/A N/A Dec-01 N/A N/A Dec-00 N/A N/A

Acquisition criteria:

In October 2003, Les Litwinowicz stated that Grove Industries has adopted a new strategy in respect of acquisitions and is interested in both high-value and low-value manufacturing businesses. It is particularly interested in manufacturers of rubber moulded or rubber-tometal bonded products supplying the automotive or other industrial sectors. Over the past five years the Group has acquired over ten UK manufacturing businesses and is interested in further niche manufacturing businesses valued at up to 20 million.

Previous relevant deal summary: Date Oct-02 Target Tractiv Holdings Ltd - distributor of agricultural and machinery components Deal value 11.0 PE ratio 9.7

Strategy:

Whereas historically Grove Industries did not tend to pay premium prices for acquisitions, it has recognised that henceforth it will need to increasingly pay higher prices for good quality businesses. We believe that with its existing UK operations, Grove Industries would consider acquiring all or part of Silvertown.

Mar-02

VIP Heinke Ltd - manufacturer of seals and gaskets

N/A

N/A

Conclusion:

Jan-01

Huddersfield Polymeric Products Ltd rubber moulding business

N/A

N/A

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: GUMMI METALL TECHNIK GMBH Germany www.gmt-gmbh.de Gerhard Engstler Chairman Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Gummi Metall Technik (GMT) is a manufacturer of moulded rubber, rubber-to-metal bonded and rubber-based anti-vibration components, dampers and mountings for the railway, aerospace, automotive, marine, construction and other industries. The Group employs over 400 people and has manufacturing operations in Germany, the UK, Ireland, Malaysia, the USA, Switzerland, Austria, Belgium and France. Share price movement: N/A N/A N/A N/A Dec-01 21.2 N/A N/A Dec-00 20.1 N/A Dec-99 19.8 N/A

Subsidiary Rubber Metall Technik UK Ltd is engaged in the supply of rubber components to the automotive industry. No recent financial information is available for this subsidiary.

Acquisition criteria:

In February 2004, Gerhard Engstler declined to discuss GMT's acquisition criteria in any detail, preferring to assess individual opportunities in the Company's core markets on a case-by-case basis.

Previous relevant deal summary: Date Feb-02 Target Huber & Suhner AG - Swiss rubber components manufacturing plant Deal value N/A PE ratio N/A

Strategy:

No stated strategy to report.

Conclusion:

GMT may be interested in all or part of Silvertown.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: HEXAGON AB Sweden www.hexagon.se Gert Viebke Group Strategy Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Hexagon is a Swedish engineering group engaged in the manufacture of industrial and engineered products including hydraulic equipment, metrology and measurement equipment, automation equipment and rubber-based products used in the aerospace, automotive, civil engineering and construction, electronics, materials handling, medical, offshore, paper and process engineering industries. Share price movement: Stockholm (HEX) SEK 201.5 49.0 263.4 Dec-02 520.2 23.7 Dec-01 416.0 15.2 Dec-00 342.0 15.0

Hexagon's Polymers division is a manufacturer of rubber profiles and moulds, rubber wheels for truck and track drive applications, rubber bladders, conveyor belt wheels, gaskets for plate heat exchangers and rubber components used in the construction industry. Its operations include Gislaved Gummi AS, Stellana AB, GFD Technology GmbH and Elastomeric Engineering Co Ltd.

Acquisition criteria:

In February 2004, Gert Viebke stated that Hexagon is acquisitive and interested in manufacturers of automation equipment, control systems, precision measurement devices and engineered rubber products. For its Polymers division it would be particularly interested in rubber compounding businesses, as well as specialist manufacturers of rubber wheels and heat exchanger gaskets. It has no size criteria, preferring to judge each opportunity on its individual merits.

Previous relevant deal summary: Date Aug-02 Target BNS Co Inc - Xygent software subsidiary metrology Deal value N/A PE ratio N/A

Strategy:

Hexagon is primarily interested in acquiring new products, competitors and complementary technologies.

Jun-02

GFD Technology GmbH - German manufacturer of industrial rubber products Brown & Sharpe Manufacturing Co Inc metrology equipment manufacturing division

N/A

N/A

Conclusion:

Although Hexagon is acquisitive, it is only interested in rubber compounding and specialist component manufacturers and is unlikely to be interested in Silvertown as a whole.

Apr-01

125.0

10.8

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: HUNTER RUBBER CO LTD UK www.hunterboots.com Mark Truman Managing Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Hunter Rubber is a leading manufacturer of rubber boots for technical, military, commercial and private use. Its brands include Hunter Wellington, Safety Wellington, Chainsaw Wellington, Firefighter Wellington and Farming Wellington. In January 2004, the Company was acquired from Interfloor Group Ltd, formerly Gates Duralay Ltd, by a management buyin team. The value of this deal was undisclosed. Share price movement: N/A N/A N/A N/A Dec-03 N/A N/A N/A Dec-02 N/A N/A Dec-01 N/A N/A

Acquisition criteria:

We are aware that following the recent management buy-in at Hunter Rubber, the Company is interested in growing through bolt-on acquisitions in its core market of rubber footwear manufacturing.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

No stated strategy to report.

Conclusion:

We are aware of the recent approach from Mark Truman and believe that there would be considerable synergies between Hunter Rubber and Silvertown's rubber footwear manufacturing operation.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: MALONEY TECHNICAL PRODUCTS INC USA www.maloneytech.com Tom Maloney President Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Maloney Technical Products (MTP) is a designer and manufacturer of rubber or plastic-tometal bonded and other technical rubber-based products for the heavy engineering, oil and gas exploration and power transmission industries. Share price movement: N/A N/A N/A N/A Dec-02 37.0 3.5 N/A Dec-01 N/A N/A Dec-00 N/A N/A

Acquisition criteria:

Our IMAP partners in the USA are aware that MTP is interested in any opportunities involving manufacturers or rubber or elastomeric products. With the backing of Shoreview, a private equity firm with experience in the rubber industry, the Company is prepared to consider all relevant opportunities that would bring both expansion opportunities and synergies.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

MTP is backed by ShoreView Industries, a US private equity firm with in excess of 200 million under management. It invests in growing and acquisitive mid-market businesses with a turnover of between 15 million and 100 million. MTP is well-known to our IMAP partners in the USA through whom we would consider approaching the Company.

Conclusion:

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: PHOENIX MEDICAL GROUP LTD UK www.phoenix-medical.com Ron Aldred Managing Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Phoenix Medical is a manufacturer of a comprehensive range of industrial rubber products including anti-vibration components, rubber-to-metal bonded parts, extrusions, roto-cured belting, cut washers and damping materials for the automotive, aerospace and railway sectors, as well as rubber-based medical products for vetinary and surgical applications. Share price movement: N/A N/A N/A N/A Dec-01 12.0 1.4 N/A Dec-01 N/A N/A Dec-00 N/A N/A

Acquisition criteria:

In December 2003, Ron Aldred stated that Phoenix Medical is actively seeking acquisitions as part of its diversification and expansion plans which will involve increasing the Group's turnover to in excess of 50 million by 2005. It would be particularly interested in manufacturers of rubber products for the medical, aerospace, defence and other industrial sectors with a turnover of between 1 million and 15 million.

Previous relevant deal summary: Date Jun-03 Target Xelflex Precision Moulders plc manufacturer of automotive, rail and aerospace rubber products Leyland & Sorbothane subsidiary Birmingham Ltd rubber manufacturing Deal value N/A PE ratio N/A

Strategy:

No stated strategy to report.

Dec-01

N/A

N/A

Conclusion:

Despite the fact that Phoenix Medical is a relatively small, the Group has made several acquisitions recently and we believe that it should be considered as a suitable purchaser for any remaining parts of Silvertown.

Dec-01

Bolton Rubber Co Ltd - manufacturer of rubber components

N/A

N/A

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: SACRED SA France www.sacred.fr Didier Fegly Managing Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Sacred is a designer and manufacturer of elastomeric and thermoplastic products such as anti-vibration components, gaskets, manifold covers, noise dampening equipment, seals, throttle valves and tubes. its customers include DaimlerChrysler, Delphi, Faurecia, Ford, General Motors, Lear, Nissan, Oxford Automotive, PSA Peugeot Citroen, Renault, Teleflex, Tenneco, ThyssenKrupp, Valeo, Volkswagen and ZF. The Group has operations in France, the USA, China, Argentina, Mexico and Morocco. Share price movement: N/A N/A N/A N/A Dec-02 20.6 0.1 N/A Dec-01 22.4 0.1 Dec-00 23.2 0.5

Sacred operates a joint-venture with Chardon Rubber Co, a US manufacturer a wide range of specialist elastomeric components for the automotive, heavy engineering, mechanical engineering and transportation industries.

Acquisition criteria:

In February 2004, Didier Fegly stated that Sacred is interested in assessing all relevant acquisitions opportunities and but would only consider these on a case-by-case basis.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

No stated strategy to report.

Conclusion:

Sacred is likely to be primarily interested in Silentbloc.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: SANDER INDUSTRIES INC USA www.sandersind.com Eric Sanders President Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Sander Industries is a holding company for 3 businesses engaged in the design and manufacture of complex aluminium and zinc/aluminum alloy die-castings and specialist elastomeric components for the aerospace and aviation, automotive, defence, electronics, information technology, medical, process control and telecommuncations industries. Share price movement: N/A N/A N/A N/A Dec-03 45.0 3.2 N/A Dec-02 N/A N/A Dec-01 N/A N/A

Subsidiary Rubbercraft Corp is a designer and manufactures of elastomeric products used in the aerospace, defence, marine, medical, recreation, telecommunications and transportation industries. Its range of products includes precision rubber-to-metal and rubber-fabric bonded elastomers, extrusions and conductive elastomers.

Acquisition criteria:

In February 2004, Eric Sanders stated that Sander Industries is currently acquisitive and interested in manufacturers of rubber and elastomeric components. Although the Group does not currently have any operations in the UK, it would consider all relevant opportunities on a case-by-case basis.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

No stated strategy to report.

Conclusion:

Sander Industries is well-known to our IMAP partners in the USA through whom we would consider approaching the Group.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: STOMIL SANOK SA Poland www.stomilsanok.com.pl Marek Lecki President Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Stomil Sanok is a manufacturer of technical elastomeric and rubber-to-metal bonded products for the agricultural machinery, automotive, construction, household appliance, pharmaceutical and railway industries. Its products include anti-vibration components, door and window weather-proofing strips, gaskets, hoses, power transmission belts and seals. The Group currently employs over 1,500 people and over 40% of its products are exported. In August 2003, Polish American Enterprise, a private equity firm, sold its remaining 38.3% stake in Stomil Sanok. Share price movement: Warsaw (SNK) ZL 135 N/A EUR 130m Dec-02 35.2 3.1 Dec-01 25.0 1.4 Dec-00 23.2 2.3

Acquisition criteria:

In February 2004, Marek Lecki stated that Stomil Sanok, although not actively looking for acquisitions, has aggressive growth targets which could be achieved through suitable bolton acquisitions. It would be primarily interested in businesses that operate in its core markets where all or part of the manufacturing could be transferred to the Group's existing facilities. The Group has successfully achieved its market flotation with its private equity backer having sold its remaining stake in the business last year.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

No stated strategy to report.

Conclusion:

Although Stomil Sanok has no history of making acquisitions, Marek Lecki would consider relevant opportunities and with its interest in moving production to Poland we would recommend approaching the Group.

RESERVE COMPANIES
Company: Country: Web Site: Contact: Position: WOCO GMBH Germany www.woco.de Andreas Heuser Corporate Development Director Stock Exchanges: Current Share Price: P/E Ratio: Market Capitalisation (m): Accounting Reference: Turnover (m): PBT (m): Activities: Woco is a leading German manufacturer of anti-vibration, acoustic control other rubberbased components for the automotive, home appliance and valve industry. Its range of products includes chassis suspension components, powertrain mounting systems, mass absorbers, cylinder head covers, silencers and resonators, rubber-plastic engine components, rubber locking modules, steering and regulator valves, pneumatic hose sets, magnetic valves, air suspension components, regulator valves, electric and pneumatic actuators, moulded hoses, induction hoses, bellows, grommets and rubber-plastic and rubber-metal bonded components. The Group has over 4,300 employees and operations worldwide. Woco operates a joint-venture with Michelin SA, Woco Michelin AVS, for the production of automotive anti-vibration components. Share price movement: N/A N/A N/A N/A Dec-02 168.1 3.2 N/A Dec-01 N/A N/A Dec-00 N/A N/A

Acquisition criteria:

In February 2004, Martin Wolf stated that Woco spent 2003 integrating its previous acquisitions and evolving from a component manufacturer into a system supplier. The Group is opportunistically acquisitive and interested in manufacturers of anti-vibration and acoustic systems for the transportation industry which accounts for over 90% of its sales. Other relevant opportunities are also of interest but are likely to be given a much lower priority as the Group focuses on its core markets and shifting its manufacturing base to lower cost markets. No stated strategy to report.

Previous relevant deal summary: Date Target Deal value PE ratio

Strategy:

Conclusion:

Woco is only likely to give high priority to manufacturers of anti-vibration components for the transportation industry and would therefore only be a suitable purchaser for Silentbloc.

Purchaser Analysis
Other Companies (47)
20 20

COMPANY NAME
Aigle SA AirBoss of America Corp Alfagomma SpA Berwin Group Ltd Bridgestone Corp Camberley Rubber Mouldings Ltd Chardon Rubber Co Clifton Rubber Co Ltd Colmant Cuvelier SA Continental AG Cooper Tire & Rubber Co CRP Group Ltd Dexine Rubber Co Ltd Duramax Marine LLC Eaton Corp Elastomer Engineering Ltd Eliche Radice SpA Exalto BV Ferrabryne Ltd Goodyear Tire & Rubber Co (The) Gomma Antivibrantes SA Harboro Rubber Co Ltd Icon Polymer Group Ltd IVG Colbacchini SpA

COUNTRY
France Canada Italy UK Japan UK USA UK France Germany USA UK UK USA USA UK Italy Netherlands UK USA Spain UK UK Italy

COMPANY NAME
Kumnam Chemical Inc Manuli Rubber Industries SpA Metallocaucho SA Michelin SA NOK Corp Parker Hannifin Corp PolyOne Corp PYI Inc Sacatec Industrie SA Sakura Rubber Co Ltd SPX Corp Sumitomo Rubber Industries Ltd Technical Rubber Products Ltd Tomkins plc Toyo Tire & Rubber Corp Ltd Tufnol Holdings Ltd Varec SA/NV Vigar SA Vredestein NV Wellco Enterprises Inc William Cook Holdings Ltd Wolverine World Wide Inc Yokohama Rubber Co Ltd

COUNTRY
South Korea Italy Spain France Japan USA USA USA France Japan USA Japan UK UK Japan UK Belgium Spain Netherlands USA UK USA Japan

OTHER COMPANIES
Company Name Country Details of Activity

Aigle SA

France

Aigle is a leading manufacturer, supplier and retailer of clothing and footwear for outdoor pursuits such as fishing, hiking, hunting, riding, sailing and skiing. The Company has over 700 employees and over 12 stores worldwide. AirBoss is a leading North American rubber compounding and mixing business supplying rubber compounds to tyre, conveyor belt, construction materials and automotive component manufacturers. AirBoss' subsidiary Acton International Inc is a manufacturer and distributor of military, industrial and consumer footwear.

AirBoss of America Corp

Canada

Alfagomma SpA

Italy

Alfagomma is a manufacturer of flexible hoses for hydraulic high-pressure fluid applications in the automotive, oil and gas, hydraulics and other heavy industries. Its range of products include textile braid, steel wire braid and steel wire spiral reinforced flexible hydraulic hoses, as well as hydraulic hose systems. Berwin is engaged in the compounding of rubber, PVC and other elastomers.

Berwin Group Ltd

UK

Bridgestone Corp

Japan

Bridgestone is a leading manufacturers of tyres and rubber products including aerospace wheels, automotive components, industrial goods, chemical products and leisure goods such as automotive hoses, building materials, conveyor belts, golf balls, marine fenders, oil booms, roof tiles and switches. Camberley Rubber Mouldings is engaged in the customer injection moulding and rubber to fabric, metal, plastic and thermoplastic bonding of elastomeric products. Chardon Rubber is a manufacturer of a wide range of specialist elastomeric components for the automotive, heavy engineering, mechanical engineering and transportation industries. It has manufacturing plants in the USA.

Camberley Rubber Mouldings Ltd

UK

Chardon Rubber Co

USA

Clifton Rubber Co Ltd

UK

Clifton Rubber is engaged in rubber compounding and the manufacture of polyurethane rollers, rubber mouldings and viton seals. Colmant Cuvelier is engaged in the manufacture of rubber belting, power belts, pulleys, sprockets and chains, couplings. torque limiters, hydraulic clutches and bushes primarily for the power transmission industry. Continental is a manufacturer of tyres for passenger cars, trucks, agricultural and industrial vehicles, as well as a range of rubber-based components for the transportation industry. The Group's brand names include Continental, General, Uniroyal, Viking and Barum.

Colmant Cuvelier SA

France

Continental AG

Germany

OTHER COMPANIES
Company Name Country Details of Activity
Continental's Contitech division is engaged in the manufacture of industrial rubber products such as conveyor belts, roofing and tubes, as well as rubber-to-metal bonded products for engine and suspension mounts, vehicle interiors, power transmission systems and hose assemblies. Cooper Tire & Rubber Co USA Cooper Tire & Rubber is a manufacturer and distributor rubber products for the transportation industry including tyres, inner tubes, anti-vibration products, hoses and car sealing systems, as well as exterior plastic trim and automotive fluid-handling systems.

CRP Group Ltd

UK

CRP is a leading worldwide manufacturer of foam buoyancy systems for production and drilling risers, ROV flotation packages, marker buoys, mooring buoys and general subsea buoyancy equipment. It also manufactures thermal insulation materials and equipment for rigid and flexible flowlines, steel catenary risers and vibration suppression systems used in marine applications. The Group was formed through the merger of CRP and Balmoral Group International Inc in February 2003. Dexine is a manufacturer of a range of rubber-based products including anti-shock sheeting protectors, anti-vibration mountings, bellows, engine mountings, expansion joints, fenders, gasket seals, grommets, handlegrips, joint and piston rings, pipe linings, suspension bushes, tap washers, valve diaphragms, wheels and wipers used in the aerospace, automotive, defence, mechanical engineering, oil drilling and railway industries. Duramax Marine is a manufacturer and supplier of cooling systems, fenders, seals and water-lubricated rubber bearings for military propulsion shaft applications.

Dexine Rubber Co Ltd

UK

Duramax Marine LLC

USA

Eaton Corp

USA

Eaton is a manufacturer of engineered products that serve the industrial, vehicle, commercial, aerospace and semiconductor markets. Its principal products include hydraulic equipment and fluid connectors, electrical power distribution and control equipment, truck driveline systems, engine components and a wide variety of control systems. The Group has manufacturing operations in 23 countries. Elastomer Engineering is a manufacturer of natural and synthetic rubber mouldings, as well as range of specialist rubber-to-metal and rubber-to fabric bonded products. Eliche Radice is engaged in the design and manufacture of propellers, drive systems and other marine components including propeller shafts, stuffing boxes, bow and stern heads, struts, bearings, rudders and face seals. Exalto is a manufacturer of a wide range of marine equipment and components including bow thrusters, hot water calorifiers, portlights, propellers, pumps, rubber bearings, seats, shaft seals, sterngear and wipers. The Company has operations in the Netherlands, Germany, the UK and the UAE.

Elastomer Engineering Ltd

UK

Eliche Radice SpA

Italy

Exalto BV

Netherlands

OTHER COMPANIES
Company Name Country Details of Activity

Ferrabryne Ltd

UK

Ferrabyrne is a manufacturer of rubber-to-metal bonded and rubber moulded products such as anti-roll bars, anti-vibration components, ball joints, couplings, diaphragms and suspension brushes used in the automotive, commercial and off-road vehicle, electrical, leisure, mechanical, medical, engineering, railway and sports equipment industries. Goodyear is the third largest tyre manufacturer in the world, its product range also including automotive hoses, belts and industrial chemicals.

Goodyear Tire & Rubber Co (The)

USA

Gomma Antivibrantes SA

Spain

Gomma Antivibrantes is a manufacturer of rubber-to-metal bonded anti-vibration components used in the transportation industry. Harboro is a manufacturer of custom-moulded rubber and rubber-to metal-bonded components and associated assemblies, extrusions, seals, keypads and foam parts for the aerospace, automotive, defence, electronics, heavy engineering and related industries. Icon Polymer is a manufacturer of rubber components for the automotive, aerospace, defence, domestic appliance, pharmaceutical and railway industries. Its range of products includes plain rubber components, fabric reinforced rubber components and rubber-to-metal bonded products. The Group was formed in June 2000 when LDC supported Icon Material Technologies Ltd's 11 million acquisition of William Warne Ltd, a manufacturer of rubber products principally for the pharmaceutical, defence and postal sectors. IVG Colbacchini is a leading worldwide manufacturer of rubber hoses used in automotive, chemical transfer, ducting, cable protection, dredging, firefighting, food and beverage, hot water, materials handling, oil rig, petroleum, railway, road tanker, steam and water transfer applications.

Harboro Rubber Co Ltd

UK

Icon Polymer Group Ltd

UK

IVG Colbacchini SpA

Italy

Kumnam Chemical Inc

South Korea

Kumnam Chemical is a manufacturer of harbour fenders, ship fenders, anchor bolts and rubber-based products for harbours and dock-sides. Manuli Rubber Industries (MRI) is engaged in the design, manufacture and distribution of fluid conveying reinforced rubber components and systems used primarily in the automotive, oil & gas, hydraulic and marine applications. Metallocaucho is a manufacturer of rubber-to-metal bonded anti-vibration components used in wide variety of industrial applications. Michelin is the leading worldwide manufacture of tyres for agricultural vehicles, passenger cars, light trucks and commercial vehicles, utility vehicles and motorcycles, as well as other rubber-based products for the automotive industry.

Manuli Rubber Industries SpA

Italy

Metallocaucho SA

Spain

Michelin SA

France

OTHER COMPANIES
Company Name
NOK Corp

Country
Japan

Details of Activity
NOK is a leading manufacturer of automotive seals and gaskets. Its customers include DaimlerChrysler, Ford and General Motors, as well all of the major Tier-1 chassis and drivetrain suppliers. NOK operates a joint-venture with Freudenberg GmbH, called Freudenberg-NOK, which is engaged in the manufacture of rubber seals for the automotive sector. It also manufactures special precision seals for the aerospace, appliance, business machine, fluid power, marine, medical, off-highway and recreational vehicle markets. Its products include engine, electrical and fuel system, transmission, axle, brake system and power steering sealing components in rubber, plastic and polytetrafluoroethylene. FreudenbergNOK has over 25,000 employees and operations in 27 countries with some 25,000 automotive employees worldwide.

Parker Hannifin Corp

USA

Parker Hannifin manufactures flow and motion control products, including fluid power systems, electro-mechanical controls, hydraulic propulsion systems and related components, for sale as original and replacement equipment to the manufacturing, transportation and processing industries. Italian subsidiary ITR SpA is a manufacturer of rubber hoses, fittings and components used in hydraulic, industrial and oil/gas applications.

PolyOne Corp

USA

PolyOne is a leading North American manufacturer and supplier of thermoplastic compounds, specialty resins, specialty polymer formulations, engineered films, colour and additive systems, elastomers and polymer products including laminates, latex, rubber sheeting and wire coatings.

PYI Inc

USA

PYI is a manufacturer and supplier of a wide range of marine products including propellers, drivetrain equipment, steering systems, fasteners, rubber and rubber-to metal bonded bearings, seals and water lubricated bearings. Its brands include Max-Prop, PSS Shaft Seal, Python, Jefa, Scanstrut and Caravel. Sacatec is a designer and manufacturer of customised rubber-to-metal and rubber-toplastic bonded components for the automotive, bottling, defence, food machinery, electrical engineering, hydraulics, marine, oil, railway and valve manufacturing industries. The Company currently has 170 employees at its production plant in France.

Sacatec Industrie SA

France

Sakura Rubber Co Ltd

Japan

Sakura Rubber is a manufacturer of rubber products such as high-pressure hoses and metal tubings, advanced composite materials, heat insulation components, tank seals and piping components for aerospace, fire-fighting equipment and petro-chemical applications.

OTHER COMPANIES
Company Name
SPX Corp

Country
USA

Details of Activity
SPX is a leading international manufacturer of a range of specialist engineering and technical products including laboratory and life science equipment, security and building systems, broadcast systems, electrical testing equipment, compaction equipment, cooling technology, fluid systems, power systems and specially engineered products. The Group also provides diagnostic, training and information services to a range of sectors. It employs more than 24,000 people in over 20 countries.

Sumitomo Rubber Industries Ltd

Japan

Sumitomo Rubber is a manufacturer of tyres, marine components and other rubberbased products for the consumer products and leisure industries. Technical Rubber Products (TRP) is engaged in the design and production of elastomeric products and rubber to plastic, fabric and metal-bonded components such as heat exchanger gaskets, manlid seals, butterfly valve seals, nuclear seals, pump diaphragms, precision rollers and fabricated hoses. Tomkins is an international group of manufacturing businesses which operate in the areas of automotive and industrial components such as power transmission products, valves, construction components, food manufacturing and professional, garden and leisure products. The Group employs over 40, 000 people in locations worldwide.

Technical Rubber Products Ltd

UK

Tomkins plc

UK

Toyo Tire & Rubber Corp Ltd

Japan

Toyo Tire & Rubber is engaged in the manufacture of tyres for cars, trucks and buses. The Group also manufactures automotive components such as seat cushions, airbags and waterproofing materials. It has operations in Japan, Australia, China, Europe and North America. Tufnol is engaged in the manufacture and distribution of high pressure laminates, filament wound tube, profiles and water lubricated bearings.

Tufnol Holdings Ltd

UK

Varec SA/NV Vigar SA

Belgium Spain

Varec is a designer and manufacturer of cast steel components for armoured vehicles. Vigar is a manufacturer of carbon black based and coloured rubber compounds.

Vredestein NV

Netherlands

Vredestein is engaged in the development, production and distribution of tyres, protective footwear, sealing systems, compounds and recycled rubbers. In September 2003, the Group was taken-private in a 160.5 million deal backed by Rabobank.

Subsidiary Hevea BV is a leading European manufacturer of rubber footwear under the Dunlop, Viking and KangaRoos brands.

OTHER COMPANIES
Company Name
Wellco Enterprises Inc

Country
USA

Details of Activity
Wellco is a manufacturer of specialist footwear including vulcanised, blast-protective overboots, desert boots, hot weather boot and military footwear. It supplies armed forces in the USA, the UK and New Zealand. William Cook is a designer and manufacturer of a wide range of cast steel components used in aeroplanes, bulldozers, chemical plants, commercial and agricultural vehicles, excavators, forklift trucks, mining equipment, off-road vehicles, oil wells, power generation plants, tanks and trains. William Cook's Defence division includes George Blair Ltd which is engaged in the design, manufacture and supply of cast components for the defence and construction equipment industries. Its products include tracks for armoured fighting vehicles such as the Challenger 2, Leclerc, Leopard 1 and Leopard 2 tanks, as well as turrets for the Challenger 2 and Warrior tanks. It also manufactures a range of other tanks components including hatch covers, mantlets, road wheels, idler rollers, sprockets, track tensioners, suspension casings and running gear components.

William Cook Holdings Ltd

UK

Wolverine World Wide Inc

USA

Wolverine World Wide is a leading supplier of footwear and apparel under brands such as Bates Uniform, Caterpillar, Harley-Davidson, Hush Puppies, Merrell, Stanley and Wolverine. The Group has operations in the USA, Canada and Europe with licensees in more than 130 countries worldwide. Yokohama Rubber is a manufacturer of rubber and plastic components for the aircraft, bus, commercial vehicle, construction equipment and passenger car industries. Its range of products includes hoses, industrial materials and seals.

Yokohama Rubber Co Ltd

Japan

Comments

Aigle should only be considered a relevant purchaser for the footwear manufacturing operation.

In February 2004, Axel Breuer (Chief Financial Officer) stated that AirBoss is currently not acquisitive as the Group is experiencing difficult trading conditions despite recent volume increases.

Our IMAP partners in Italy are aware that Alfagomma is focusing primarily on growing its rubber hose manufacturing operations and moving its production plants to the Far East.

In February 2004, Glyn Williams (Managing Director) stated that Berwin is currently not acquisitive. Bridgestone had a preference for joint-ventures and development partnerships as seen with its recent agreements with Continental AG, Yokohama Rubber Co Ltd and Nokian Renkaat Oy.

In February 2004, Joe Griffiths (Managing Director) stated that Camberley Rubber Mouldings is currently not acquisitive. In February 2004, John Webber (Vice President, Finance) stated that in view of Chardon Rubber's joint-venture with Sacred, he would recommend approaching Sacred with any relevant acquisition opportunities in the first instance. Clifton Rubber is too small to pay a premium price for an acquisition such as this. Colmant Cuvelier is too small to pay a premium price for an acquisition such as this.

In January 2004, Angela Hetzel (Mergers & Acquisitions Director) stated that Continental is not currently acquisitive in Western Europe as the Group is focusing primarily on reducing its gearing through strict cost management and the relocation of production facilities to low cost countries.

Comments

In February 2004, Phil Weaver (Chief Financial Officer and Head of Corporate Development) stated that having acquired Dean Tire Inc, the automotive sealing system business of Standard Products Co, Invensys' Siebe automotive fluid-handling division of Invensys and Max Trac Tire Inc in recent years, Copper Tire & Rubber is focused on integrating these businesses and in the future will focus purely on making automotive-related acquisitions.

CRP is focused entirely on the design, development and manufacture of specialist buoyancy equipment for the offshore industry and would not be interested in an opportunity such as this.

In January 2004, Tom O'Reilly (Managing Director) stated that Dexine Rubber is currently loss-making and not in a position to make any acquisitions at the present time.

Duramax Marine is too small to pay a premium price for the whole of Silvertown but may be considered a relevant purchaser for the marine bearings business. In recent conversations Ken Semelsberger (Vice President, Strategic Planning) stated that although Eaton is acquisitive, it is not interested in rubber and elastomeric component manufacturing businesses.

In February 2004, John Gardner (Managing Director) stated that Elastomer Engineering is not acquisitive. Eliche Radice is too small to pay a premium price for the whole of Silvertown but may be considered a relevant purchaser for the marine bearings business.

Exalto should only be considered a suitable purchaser for the marine bearings business.

Comments

In February 2004, Andrew Byrne (Managing Director) stated that Ferrabyrne is not actively seeking any acquisitions at the present time and would only consider opportunities involving asset sales of distressed or insolvent businesses. In recent conversations Richard Kramer (Senior Vice President, Strategic Planning) stated that Goodyear is currently not acquisitive as the Group is focusing on returning to profitability and is in the process of restructuring its manufacturing operations worldwide. Gomma Antivibrantes is too small to pay a premium price for an acquisition such as this. In February 2004, James Briggs (Managing Director) stated that Harboro is currently not acquisitive.

Although on the basis of recent conversations with Richard Gogerty (Managing Director) we are aware that Icon Polymer is pursuing a buy-andbuild strategy as part of the expansion of its product range, it would not be suitable to reinitiate conversations with the Group at the present time.

In February 2004, Luigi Cereda (Chief Executive) stated although IVG Colbacchini would consider selective acquisitions in the second-half of 2004 involving manufacturers of specialist rubber products in areas outside its core product lines, at the present time the Group is focusing entirely on its major capital investment in a new plant in the Czech Republic.

Kumnam Chemical is focused entirely on the manufacture of marine fenders and is too small to pay a premium price for an acquisition such as this. Our IMAP partners in Italy are aware that MRI is acquisitive but that the Group is primarily interested in manufacturers of rubber hoses for the automotive, oil and marine industries. Metallocaucho is too small to pay a premium price for an acquisition such as this. In February 2004, Philippe Verneuil (President, Woco Michelin AVS) stated that Michelin is not currently acquisitive as the Group is focusing on growing its worldwide operations organically.

Comments
In February 2004, Mohsen Sohi (Chief Executive Officer, Freudenberg-NOK) stated that all acquisition opportunities for Freudenberg-NOK would need be submitted to Freudenberg in the first instance.

We are aware on the basis of recent conversations with Spencer Evans (Business Planning Manager, Parker Hannifin Europe) that Parker Hannifin is primarily interested in manufacturers of flow and motion control products.

We are aware that following several years of difficult trading PolyOne is disposing of its non-core businesses in order to reduce its overall debt and is therefore not acquisitive. The divisions for sale include elastomers and performance additive compounding, engineered films and specialty resins.

PYI is focused purely on the supply of marine products and should only be considered a relevant purchaser for the marine bearings business.

We are aware that although Sacatec has previously shown interest in the bladder manufacturing operations, the Company is too small to pay a premium price and, in addition, Rene Wallyn (President) is now unlikely to be interested in an opportunity such as this.

In February 2004, Hiroshi Nakamura (President) stated that Sakura Rubber is currently not acquisitive.

Comments
We are aware that although SPX is acquisitive in Europe, the Group is primarily interested in manufacturers of valve, instrumentation and measurement equipment to the automotive, chemical processing, marine, petrochemical, process plant and power generation sector, as well as suppliers of technical information and documentation services to the automotive, capital equipment, energy and life science sectors.

Sumitomo Rubber has been focusing on the restructuring of its operations in order to return the Group to profitability and is currently not acquisitive. In February 2004, Peter Children (Managing Director) stated that TRP is currently not acquisitive.

Although we are aware that Tomkins is acquisitive, the Group is not interested in manufacturers of rubber-based components.

Toyo Tire & rubber is currently focusing on improving its financial performance through the adoption of new production and inventory systems and is only interested in expansion opportunities in North America.

Tufnol is too small to pay a premium price for an acquisition such as this and could only be considered a suitable purchaser for the marine bearings business. Varec is too small to pay a premium price for an acquisition such as this. Although Vigar acquired GDX Automotive GmbH from GenCorp Inc in February 2003, the Company is only interested in rubber compounding businesses and has no interest in moving upstream where it would compete with its customers. In February 2004, Nico Moolenaar (Chief Executive Officer) stated that Vredestein is currently not acquisitive as the Group is focusing on the sale of its Vredestein Rubber Resources division.

Comments
Wellco should only be considered a relevant purchaser for the footwear manufacturing operation.

William Cook is focused purely on the manufacture of steel castings and would not be interested in a manufacturer of elastomeric and rubber components.

Wolverine World Wide is a supplier of large-scale branded footwear and is unlikely to be interested in an opportunity such as this.

We are aware that having established an alliance with Continental AG in April 2002, Yokohama Rubber is not interested in any acquisition opportunities in Western Europe.