The fastener trade's recent flurry of acquisitions has continued with Sweden's Bufab buying one of the UK's best known fastener firms, TIMCO, for £60 million.
TIMCO (´TI Midwood & Co Limited`), has annual sales of approximately GBP 60 million. The C-parts trading company is also a one-stop-shop for independent merchants in the construction industry.
Headquartered in Nantwich, Cheshire, UK, with an additional sales office in Monaghan, Ireland, the company has been family-owned since its foundation in 1972 by Tim Midwood, and is currently run by Tim’s son, Simon Midwood, Managing Director - who will continue to run the business with the senior TIMCO team. Under Simon Midwood's leadership, TIMCO has expanded to become a one-stop-shop for over 4,500 independent merchants across the UK and Ireland, supplying essential products that trade professionals rely on every day, such as screws, fasteners and fixings, nails, adhesives and chemicals, power tool accessories, hand tools, building hardware and site protection, security and ironmongery and PPE. TIMCO has a very long and solid track record of growth and profit. In the twelve-month period ending December 2021, TIMCO had 187 employees and sales of approximately GBP 60 million with an 11% normalised operating margin.
The acquisition will be financed by Bufab's existing credit facility, which has been increased from 3 SEK billion to 4 SEK billion, with unchanged terms.
The purchase price paid upon closing of the transaction amounts to GBP 54 million on a cash-free/debt-free basis. A performance-based additional payment of maximum GBP 20 million may be made in 2023-2024 conditional on a significant improved operating profit.
It's Bufab's second acquisition in a month, having acquired the shares of Danish C-Parts trader Pajo Bolte.
“I am honoured and very happy to announce this acquisition, which is the largest acquisition so far for Bufab. It is a significant and attractive add-on to our existing businesses in the UK that will strengthen our position on the British market. TIMCO is a very strong brand within C-parts to the construction industry and will significantly improve Bufab's customer offering in this market segment. This strategic expansion in the UK market further underlines our commitment to grow and widen our offering in new market segments and we are confident that TIMCO will continue to grow and to keep its strong entrepreneurial DNA and excellent customer service also as a member of Bufab group,” says Johan Sandberg, Director Global Business Development and Group Director UK.
Simon Midwood, Managing Director at TIMCO, added: "This deal comes at a good time in TIMCO’s development and will enable us to accelerate our growth and continue expanding the range of products and services we offer, while still maintaining our first-class customer service. We look forward to working with our new colleagues at Bufab in driving the company forward.”
The transaction earlier this week and will be reported within Bufab's segment UK/North America. It will generate transaction costs of approximately 10 MSEK in the first quarter of 2022.
