Relco and VLM: A partnership with prospects

Oct. 15, 2009
Date Announced: 15 Oct 2009 The course has been set for the merger of lighting specialists Relco and VLM since 31 March 2009. After six months of successful collaboration, the tremendous potential of this new tie-up is obvious: the combine is in a position to make a significant impression in the lighting sector, in terms of logistics and creativity.The pooling of skills, expertise and capacity is frequently crowned by commercial success. This is also demonstrated in the example of Relco and VLM. The Relco Group has been VLM's most important strategic partner since the start of April, as a result of a massive increase in its stake in the company. The aim was and remains the gradual integration of VLM into the Relco Group. The course was set six months ago. As of 31 October the merger of Relco and VLM is also legally in the bag. Dr Giuseppe Conte, CEO of Relco Nord GmbH, will be primarily responsible for ensuring that the amalgamation of the two companies runs smoothly.Although mergers of this magnitude always involve a logistical tour de force, it is already clear that it was the right thing to do. With over 1,200 employees, subsidiaries in 74 countries around the globe, worldwide distribution and around 40,000 square metres of warehousing and 35,000 square metres of production space, the new lighting giant should be guaranteed a place in the sun. And not just because of impressive figures. Intellectual capital and many years of experience are also good arguments for a promising future. "Relco and VLM are ideal partners," says Gerhard Heidenreich, Head of Marketing at Relco Group Germany. "These two companies have been on the market for around 40 years, and VLM and Relco were already selling transformers and dimmers together 20 years ago in Germany. We know and respect one another and we complement one another. There are hardly any overlaps in the two product ranges – and if there are, then the expertise adds up to create improved products. So the winners are primarily the customers and users", as Heidenreich states.The preconditions for the merger were put into place long ago. Along with the new management team, everyone is also pulling in the same direction in terms of location - in Hilden, just 15 kilometres away from the former VLM headquarters in Mettmann. Here the company has over 3,000 square metres of warehouse space. Five employees in the field service take care of the direct sales of lighting systems in Germany, and ten more sales representatives provide customer contact support. In addition to the complementary range of products and the significantly improved infrastructure, Gerhard Heidenreich also recognised another advantage of the merger. A bonus that cannot be defined in terms of square metres or euros, but which can be equally crucial to long-term success: "We can now offer a genuine 'best-of-both-worlds'," says Gerhard Heidenreich. "On the one hand the innovative energy of an internationally oriented Italian company and Italian design which is highly respected throughout the world. On the other hand the typically German virtues such as diligence and total reliability.”The market power that the new company possesses becomes clear from a glimpse at the complete catalogue: six different brands (Relco, Leuci, VLM, ELIOS, Leonardo Luce and Segno) offer a total of more than 10,000 individual components and subassemblies. The spectrum ranges from transformers, dimmers, and LED technology, through to light bulbs, switches, designer lights and lighting units in the consumer sector. In short, wherever you need light or lighting technology, you'll find Relco too. All product development will in future focus even more on the customer. Gerhard Heidenreich states, "Our future clearly lies in the further development of energy-saving lighting solutions in the LED sector and energy-saving light bulbs, in conjunction with customised solutions for the trade and for DIY." Meaning nothing less than the entire bandwidth of About the Relco Group:Founded in 1967 by Guiseppe Pisati and now headed by Angelo Giuliano Pisati, the Relco Group based in Buccinasco is one of Italy's market leaders in the wholesale distribution of electrical goods and lighting equipment. These products are characterised by their top-class quality, modern design and innovative creativity. All the products are designed, built and marketed worldwide by the Relco Group.From electrical and electronic components for lighting, through emergency lighting and light control systems, to light bulbs, the Relco Group is the only Italian group to cover the entire spectrum of lighting products. This is made possible by means of cooperation with some well-known Italian companies. 2004 saw the arrival of Leonardo Luce Italia, a company specialising in lamps and lighting technology, followed in 2006 by Leuci, a company well-known for the production of light sources since 1919. As a result of the merger with the innovative light manufacturer Segno di Leonardo in 2007, the Relco-Group is also very well-established in the field of design. The latest development is the merger with manufacturing company VLM S.p.A., the leading provider of electronic components and lighting electronics in Italy. Whereas the two companies will still remain independent of one another in Italy, the two subsidiary companies Relco Nord GmbH and VLM GmbH will merge to become Relco Group Germany GmbH.

Address of Relco Group Germany GmbH und VLM GmbH: Relco Group Germany GmbH EVOLUTION of LIGHT Agnes-Pockels-Straße 9 Germany – 40721 Hilden Tel.: +49 (0) 21 03 – 91 19 900 Fax: +49 (0) 21 03 – 91 19-800 [email protected] Further information for the press Relco Group Germany GmbH Gerhard Heidenreich Agnes-Pockels-Straße 9 Germany – 40721 Hilden Tel.: +49 (0) 21 03 – 91 19 923 Fax: +49 (0) 21 03 – 91 19-823 Mobil: +49 (0) 1 72 - 2 125 789 [email protected] snapshot Redaktionsbüro Herterichstr. 89 Germany – 81477 München Tel.: +49 (0) 89 - 74 65 36 63 Fax: +49 (0) 89 - 74 65 36 68 E-Mail: [email protected]

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