Trifast acquisition extends presence into German market
17 December 2015
Trifast Plc has announced that it has acquired Kuhlmann Befestigungselemente GmbH & Co KG for a total consideration of 8.5 million euros, of which 6.76 million euros was paid on completion in cash, with 0.04 million euros in Trifast shares. 1.7 million euros will be deferred for 12 months as a retention against potential warranty and indemnity claims.
Kuhlmann is based in Verl, close to Bielefeld and distributes fasteners to the German domestic market. It employs 18 people and reported 2014 revenue of 6.7 million euros and pretax profit of 1.74 million euros. Previous owners Frank Niggebrügge, Eric Hütter, and Peter Henning, will continue as the management team.
Trifast will be investing into Kuhlmann to further develop the opportunities in the German market and expects the acquisition of Kuhlmann to be earnings enhancing in the first full year of ownership.
Commenting on the acquisition, Malcolm Diamond MBE, executive chairman of Trifast, said: “As investors know, we have a strong philosophy when it comes to acquiring profitable businesses – in our key sectors – backed up by respected and experienced management. Kuhlmann provides just this and the base from which to grow our presence and sales into the largest manufacturing country in the EU region. Everyone at TR looks forward to working with the Kuhlmann team to achieve this objective.”
Trifast’s chief executive, Mark Belton, added: “This is a very positive step for both TR and Kuhlmann and we welcome everyone into the Trifast family. Having already built a close trading relationship between our two businesses and respective management teams, we are now establishing a strong local presence and a base for what we see as an exciting opportunity for both TR and Kuhlmann. We are confident that combining local knowledge and culture with increased technical expertise, in what is the largest industrial market in Europe, will enable us to leverage the Group’s existing business and open up additional opportunities for further growth, both locally and internationally.”
Frank Niggebrügge at Kuhlmann commented: “We have known the TR team for a number of years and we have mutual respect for each other’s business. The opportunity for Kuhlmann to become part of an international business opens up new markets and opportunities, as well as us being able to benefit from the international manufacturing, sourcing and purchasing resources, and worldwide marketing capabilities that the Trifast Group has to offer. We look forward to working with the Trifast team and exchanging ideas and initiatives.”
