Bufab as an investment

Bufab is a stable company with historically good returns and profitable growth. Since its start in 1977, the company has recorded full-year operating profits every year. Meanwhile, Bufab continues to grow faster than the market. An important reason is that industrial companies are reducing the complexity of their supplier base by outsourcing their C-parts management to industry leaders like Bufab.

Hero-image-bufabasaninvestment-2 Hero-image-bufabasaninvestment-2Hero-image-bufabasaninvestment-2

C-parts have low direct but high indirect costs and are demanding to manage. However, thanks to Bufab’s global presence and efficient processes, customers can usually expect total cost savings, often by as much as 20 percent.

Bufab will take a leading position when it comes to sustainability within C-parts. This means that we will integrate sustainability into both our internal processes and our external supply chains, which will further increase our competitiveness.

C-parts have low direct but high indirect costs and are demanding to manage. However, thanks to Bufab’s global presence and efficient processes, customers can usually expect total cost savings, often by as much as 20 percent.

Bufab will take a leading position when it comes to sustainability within C-parts. This means that we will integrate sustainability into both our internal processes and our external supply chains, which will further increase our competitiveness.

The long-term global trend for industrial companies is to reduce the complexity of their supplier base and outsource their C-parts sourcing to companies like Bufab. This trend has been accelerated by greater demand for sustainability across the supply chain, increased digitalisation, more trade barriers and, recently, supply chain disruptions.

Bufab is one of the leading global companies for C-parts, providing customers with what we call “peace of mind”. As a result, we see strong potential for continuing to grow organically faster than the market. Meanwhile, we operate in a highly fragmented market with excellent acquisition potential.

An important success factor for Bufab is our decentralised organisation and strong Solutionist corporate culture, always putting customers and quality first. This culture of personal responsibility and accountability makes entrepreneurs bloom and promotes value creation at every level.

Read more

As a trading company, Bufab has a limited need for capital-intensive equipment and machinery. Low capital expenditure means that our fixed costs, primarily salaries and rent, can be adapted to demand. In addition, our business is spread over thousands of customers and suppliers in many industries and geographic regions, which limits our dependence on individual customers. This means that Bufab’s business model entails low risk.

Bufab is one of the few leading players in a highly fragmented market. Increasing demand for sustainable solutions, quality and digitalisation make it difficult for smaller players to increase their market share. We are a strong local partner in each of our 28 countries while serving international customers on several continents. C-part suppliers are becoming increasingly important for customers. Our strong position enables us to acquire smaller players with growth synergies with Bufab.

Since 2014, we have completed 15 acquisitions with total annual sales of SEK 3,400 million. In this manner, we have expanded our presence in new industries, product segments and geographic regions and have become even more relevant for our customers. Our ambition is to be one of our industry’s top five global consolidators.

C-parts have low direct but high indirect costs and are demanding to manage. However, thanks to Bufab’s global presence and efficient processes, customers can usually expect total cost savings, often by as much as 20 percent.

Bufab will take a leading position when it comes to sustainability within C-parts. This means that we will integrate sustainability into both our internal processes and our external supply chains, which will further increase our competitiveness.