Transformational year for the Van Leeuwen Pipe and Tube Group
by Hans Diederichs
2019 was a transformational year for the Van Leeuwen Pipe and Tube Group. The financial results improved as compared to 2018, despite lower economic activity in the industry segment and one-off acquisition cost. The acquisition of Benteler Distribution, which was closed at the end of November 2019, will double the company’s total sales volume.
Van Leeuwen’s turnover increased 25% to € 787 million. The operating result improved almost 26% to € 17 million (2018: € 13.5 million). The net result increased to € 10.1 million (2018: € 9.7 million). Excluding the contribution of the acquisition of Benteler Distribution, Van Leeuwen’s turnover increased 19% to € 750 million. The operating result improved to € 18.3 million and the net result increased to € 11.5 million.
Most of the European distribution companies had positive results in 2019. Market activity during the first half of the year was at a good level. In certain industry segments demand started to slow down later in the year. The total level of demand in the building and construction segments in Europe was excellent throughout the year, but slowed down towards the end of the year, specifically in the equipment manufacturing segments. Business activity in the energy segments improved significantly in the second half of the year. Van Leeuwen successfully executed large projects in North America, Asia, and Europe. At the start of 2020, the order book for energy projects was at a good level.
On 31 July 2019, the Van Leeuwen Pipe and Tube Group entered into an agreement to acquire Benteler Distribution, an international distribution company operating in the mechanical engineering, automotive, energy, construction and ship-building industries. The acquisition closed on receipt of all necessary approvals from relevant regulatory authorities on 29 November 2019. This strategic acquisition provides Van Leeuwen access to additional key markets in Europe.
Peter Rietberg, Chairman of the Management Board: “For Van Leeuwen, 2019 was an exceptional year in which we celebrated our 95th anniversary and acquired Benteler Distribution. The integration of Benteler Distribution is in full swing. As a family business with a long history and a solid financial basis, Van Leeuwen has confidence in its future. Even in less favourable times, we can rely on the resilience and strong structure of our worldwide company and first and foremost on the creativity, dedication and the fighting spirit of our management and employees.”
Source and photo: Van Leeuwen Group