Bufab Group has entered an agreement to acquire all outstanding shares in the US company, American Bolt & Screw Mfg Corp (ABS), with annual sales of approximately US$ 52 million.
ABS is a distributor of fasteners and other C-class components in the North American market. It is headquartered in Ontario, California, with branches in Indiana, Georgia, Texas, Oregon and Arizona. ABS was founded in 1946, and since 1982 has been fully owned and run by its current president, Jim Hooper. Under his leadership, ABS has expanded to a nation-wide supply chain partner to customers across many industries. In the twelve months ending September 2019, ABS had 96 employees and sales of approximately US$52 million with an 11% normalised operating margin.
"It gives me great pleasure to announce that ABS is joining the Bufab Group. Over many meetings in the past two years, we have gotten to know the company well, and see great similarities to Bufab in the solution-oriented, entrepreneurial approach to creating customer value. This strategic expansion into the North American market further underlines our commitment to growth, and to our ‘Leadership 2020’ strategy”, says Jörgen Rosengren, Bufab’s president and CEO.
“We are confident that ABS will continue to grow and thrive as a member of the Bufab Group. The acquisition of ABS also strengthens Bufab’s offering to global customers and provides us with a stronger base for further expansion in North America”, says Urban Bülow, group director north America.
"By joining Bufab, we will be able to continue to improve our customer service, grow our business and strengthen our team in the same way we have for the last decades. It will be business as usual, with the same high ambition level, but now as a part of a globally leading organisation. I am pleased to continue as senior advisor to ABS, and together with the whole ABS team I look forward to the cooperation with Bufab”, says Jim Hooper, American Bolt & Screw’s main owner.
The acquisition will be financed within Bufab's existing credit facilities. The closing purchase price amounts to US$30 million on a cash-free/debt-free basis, with a further deferred purchase price of US$30 million paid in instalments, mainly in 2023 – 2024. A performance-based additional payment may occur in 2023 conditional on a significantly improved operating profit. The transaction was expected to close immediately with ABS reporting within Bufab's International segment. Transaction costs of approximately SEK 10 million will be incurred in the fourth quarter 2019.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 17 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.