Bufab AB has acquired Italian C-parts distributor VITAL S.p.A.
Headquartered in Milan, VITAL has been family-owned since its foundation in 1975. The company’s customers are primarily located in Italy, and are from a variety of industries including electrical, machinery, rail, and construction.
Currently VITAL has 57 employees. Its net sales reached €48 million in 2023.
“We see VITAL as a great opportunity to build up our Italian footprint and increase our service level to the customers we are currently supporting there. It is a stepping stone of a suitable size with a great reputation that in the future can be used as a platform for add-on acquisitions and drive market consolidation in a highly fragmented market,” said Erik Lundén, President and CEO of Bufab.
The acquisition will also help Bufab deepen its presence in Italy and southern Europe, according to Lundén.
The purchase price amounted to €31.9 million on a cash-free and debt-free basis. In addition, a deferred purchase price of circa €11 million will be paid in two instalments in 2025 and 2026. Finally, a performance-based additional payment (earn-out) of a maximum of €11.2 million may occur in 2025, 2026, 2027 and 2028, conditional on improved operating profit. The acquisition will be financed by Bufab’s existing credit facility.
“This deal comes at a good time in VITAL’s development and will enable us to accelerate our growth journey,” said Daniele Pesce, Stefano Pesce and Luca Bernasconi, former owners of VITAL.
