Bufab Group: Bufab has acquired Montrose Holdings Ltd
Värnamo, December 6, 2016
Bufab has acquired 100 per cent of the shares in Montrose Holdings Ltd, "Montrose". Montrose is a privately owned UK company, supplying fasteners, other C-class components and associated services to industrial customers mainly located in the UK.
Montrose was founded in 1991 and has since then enjoyed stable and profitable growth. Today, the company has 45 employees, located in High Wycombe and Bedford, England. In addition to fasteners, the company provides special components in a wide range of materials as well as products for maintenance, repair and operations (MRO). Customers are spread over many industries, including electronics, aerospace and construction. In the fiscal year which closed in August, 2016, Montrose had net sales of approximately GBP 6.4 million and an EBIT margin of approximately 10%.
The acquisition will be financed within Bufab's existing credit facilities. Net of acquisition costs, the acquisition will have a negative effect on Bufab's operating profit for the fourth quarter of 2016 of approximately SEK 4 million, but is expected to contribute positively to earnings per share starting from the first quarter of 2017.
"I am very pleased to announce the acquisition of Montrose, an excellent add on to our existing businesses in the UK and in Europe. Montrose is known as a reliable and innovative supply chain partner, and enjoys strong and long term customer relations. We expect both Montrose and the rest of Bufab to benefit from this combination", says Jörgen Rosengren, Bufab's CEO.
"We see Bufab as a leader in our industry. Bufab's international presence and other resources will help Montrose develop and grow in the coming years. We are delighted to become a member of the Bufab Group, and look forward to our joint development going forward, comments Charles Ainsworth, Managing Director, Montrose.
For further information, please contact:
Jörgen Rosengren, President and CEO, Bufab Group, telephone: +46 370 69 69 01
Thomas Ekström, CFO and IR Director, Bufab Group, telephone: +46 370 69 94 01
Bufab AB (publ), Corporate Registration Number 556685-6240, is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, etc.). Bufab's Global Parts ProductivityTM customer offering aims to improve productivity in the customers' value chain for C-Parts.
Bufab was founded in 1977 in Småland and is an international company with operations in 24 countries. The head office is located in Värnamo, Sweden, and Bufab has about 940 employees. Bufab's net sales for the past 12 months amounted to SEK 2.8 billion and the operating margin was 9 percent. The Bufab share is listed on Nasdaq Stockholm, under the ticker "BUFAB". Please visit www.bufab.com for more information.