Bufab acquires Apex Stainless
27 November 2015
On 27th November Bufab acquired Apex Stainless Holdings Limited (Apex Stainless) – a privately owned UK company, specialising in the distribution of stainless steel fasteners, mainly to UK-based customers.
Bufab announced it was paying approximately SEK 310 million (c. EUR 33 million) on an "enterprise value" basis, of which SEK 13 million was placed in escrow, conditional on stable development in 2016. An additional performance-related purchase consideration of a maximum SEK 39 million may be paid in 2017, conditional on improved profit in 2016. Apex Stainless will report within Bufab's International segment. The acquisition was financed through an extension of Bufab's existing credit facilities.
Apex Stainless was founded in 1991 and has achieved stable and profitable growth since to become one of the leading UK distributors of stainless fasteners. The company has 110 employees working in four linked operations in Rugby, Bilston, Teddington and Leeds, and in a manufacturing unit in Leicester.
Bufab disclosed that Apex Stainless achieved 2014 sales of approximately GBP 23.6 million with an EBIT margin of 19%. 90% of sales came from the trading business and 10% from in-house manufacturing of specialised high-performance stainless steel fasteners.
Bufab Group CEO, Jörgen Rosengren, said: "I am very proud to announce this highly complementary acquisition, which is a significant and attractive add-on to our existing businesses. We have known Apex Stainless for many years as a proven leader in its industry, enjoying a very strong position in stainless steel fasteners in the UK. We expect Apex Stainless to continue its strong and stable development under the existing management. We also expect the acquisition to strengthen the rest of the Group through its expertise in stainless fasteners, an important product area for Bufab."
Paul Lower, Chief Executive, Apex Stainless commented: "Bufab is a well-known leader within our industry and has the international presence and network needed for our continued expansion. We will have the opportunity to continue working as an independent company and do business as usual, while benefitting from being part of the Bufab Group. We very much look forward to this."
