The Board of Directors of Bufab AB has decided to raise the profitability target and to initiate a strategic review regarding Bufab’s manufacturing companies Bufab Lann AB and Hallborn Metall AB. The revised financial targets and the strategic review are a result of the company’s updated strategy.
Raised profitability target
In March 2021, Bufab presented new financial targets relating to profitable growth, profitability, dividend and financial stability for the period until 2025, where the financial target relating to profitability was set to be achieved by 2023 at the latest. In light of Bufab’s positive EBITA margin development during 2021-2023, the growth opportunities and the updated strategy, the Board of Directors has decided to adopt a raised financial target relating to profitability.
Strategic review of manufacturing companies
In view of Bufab’s updated strategy, the Board of Directors has decided to initiate a process to evaluate strategic alternatives with regard to Bufab’s manufacturing companies Bufab Lann AB and Hallborn Metall AB in order to maximise the value for Bufab’s shareholders. The evaluation process will be initiated immediately, and the review shall include a broad range of alternatives, including a potential sale of the companies.
The reason for the review is the last years’ strong development of Bufab into a global provider of C-Parts and technical components where Bufab has become more focused on the trading business and complimentary niche companies.
The Board of Directors has not set a timetable for completion of the review. There can be no assurance regarding the results or outcome of the strategic review. Subject to compliance with ongoing disclosure obligations pursuant to applicable laws and regulations, Bufab undertakes no obligation to make any further announcements regarding the strategic review unless and until final decisions are made by the Board of Directors.
