Barloworld Ltd has acquired Geveke Intern Transport BV, Hyster's Dutch dealer, for R41 million (USD5.9 million).

The purchase, effective this month, includes Geveke's 1,000 long and short-term rental units. Geveke, which employs 150 people, has annual revenue of EUR30 million (USD35 million) and had a 2002 operating profit of EUR500 000 (USD583,000). Geveke has been Holland's Hyster dealer for 50 years.

Barloworld chief executive Tony Phillips said the deal was funded by the company's existing cash resources in Europe.

"This expansion of our materials handling business is part of our long-term strategy to grow our company. The geographic coverage of Geveke in Holland is adjacent to our existing operations in Belgium and the UK and will form an integral part of our European business," he said.

Before the Geveke acquisition, Barloworld's industrial distribution business employed 3,200 people in the US, UK and Belgium, had 2002 sales of GBP384 million (USD652.3 million) and a combined forklift rental fleet of 25,000 machines.

Barloworld industrial distribution chief executive Brandon Diamond said Geveke's name would change to Barloworld Intern Transport. Geveke's Lex Knol would remain as managing director.

"We are looking forward to including Geveke in our Hyster dealership network, and using Barloworld's expertise to add value for Geveke's customers," he said.