High Wycombe and Bedford-based Montrose Holdings has been acquired by Bufab.
Montrose is a privately owned 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 enjoyed stable and profitable growth. Now with 45 employees, Montrose provides fasteners and 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 August 2016, Montrose had net sales of approximately GBP 6.4 million and an EBIT margin of approximately 10%.
"I am very pleased to announce the acquisition of Montrose, an excellent add-on to our existing businesses in the UK and in Europe,” said Bufab CEO Jörgen Rosengren, Bufab's CEO. “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.”
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.
Montrose MD Charles Ainsworth added: "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."
Bufab is headquartered in Sweden. Read more at www.bufab.com
