Bufab is to acquire C parts Supply Chain Partner HT BENDIX A/S, for SEK 350 million.
Founded in 1975, HT BENDIX is headquartered in Herning, Jutland, Denmark, generating sales through Scandinavia, the Baltics, Germany, England, France and Poland. With strong expertise in the furniture and fitting industries, the firm has 80 employees and generates annual sales of approximately SEK 500 million (DKK 345 million) and an operating margin of approximately 10%.
It's Bufab's second acquisition of a Nordic c-parts business in the last nine months, following the purchase of Rudhäll in October.
Financed through Bufab's existing credit facilities, the HT BENDIX purchase - on an "enterprise value" basis - amounts to approximately SEK 350 million upon closing of the transaction. An additional purchase price preliminarily estimated at SEK 70 million will be paid out in instalments in 2020-2022, conditional on stable and improving financial development.
"I am honoured and very happy to announce this acquisition, which is a significant and attractive add-on to our existing businesses in the Nordics, and which presents attractive growth synergies for both companies”, says Jörgen Rosengren, Bufab's President and CEO.
Johan Lindqvist, who manages Bufab’s Segment Sweden, added: “HT BENDIX A/S is well known in the industry for its high product and service quality, solution-oriented approach, and skilled staff. We wish the HT BENDIX A/S team a very warm welcome into the Bufab Group."
MD and spokesman for the owners of HT BENDIX A/Sv Kaj Østergaard said: "In the past years, Bufab has become known as a leader in the C parts industry globally. We have looked for a global player with the strength to help us bring HT BENDIX A/S to a new level. And we have searched for a company with a mindset and culture that fit HT BENDIX A/S. We are convinced that Bufab is the ideal partner to continuous successful growth."
The acquisition will close and take effect immediately, but is conditional on the customary authority approvals, and will be reported within Bufab's Swedish segment. It is expected to contribute to Bufab's earnings per share starting from Q3.
Sales and profits rose for Bufab in 2018.
