Bufab : divests Bufab Lann AB and Hallborn Metall AB as part of the company's updated strategy
June 24, 2024 at 04:02 am
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Published: 2024-06-24 08:00:00 CEST
Bufab AB
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Bufab divests Bufab Lann AB and Hallborn Metall AB as part of the company's updated strategy
Bufab AB (publ) ("Bufab" or the "Company") has today signed an agreement to divest its manufacturing companies Bufab Lann AB ("Lann") and Hallborn Metall AB ("Hallborn") to Arbona Industri AB ("Arbona") for a purchase price of SEK 230 million on a cash and debt free basis. The divestment is a result of the strategic review previously communicated by the Company and aims to maximize the value for Bufab's shareholders.
Lann and Hallborn are two companies that manufacture components through turning and milling. The divestment is in line with Bufab's previously communicated plan to evaluate strategic alternatives for the two companies, in light of the updated strategy presented by the Company in December 2023. The reason for the review is that Bufab sees the trading business and complimentary niche companies as its future core operation.
During the financial year 2023, the combined net sales for Lann and Hallborn amounted to approximately 5 percent of the Bufab group's total net sales.
"I am pleased that we are nearing the end of the strategic review that began in December 2023, and I see the divestments as part of streamlining Bufab's offering and as a step towards achieving our updated profitability targets. Arbona stood out early on in the process and feels like the right owner to take advantage of and drive Lann and Hallborn forward", says Erik Lundén, Bufab's President and CEO.
The transaction is expected to be completed during the third quarter of 2024.
Advisors:
Clearwater is acting as financial advisor and Mannheimer Swartling is acting as legal advisor to Bufab in the transaction.
For further information, please contact:
Erik Lundén
President & CEO
+46 370 69 69 00
erik.lunden@bufab.com
About Bufab
Bufab is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control, sustainability and logistics for C-Parts. Bufab was founded in 1977 in Småland, Sweden, and is an international group that today consists of more than 50 companies. The group has 1,800 employees in some 28 countries and annual sales of SEK 8.7 billion in 2023. The share is listed on Nasdaq Stockholm since 2014. Read more on www.bufabgroup.com.
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Bufab divests Bufab Lann AB and Hallborn Metall AB as part of the companys updated strategy.pdf
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Bufab AB (publ) is a Sweden-based company engaged in the supply of fasteners and small parts to industrial segments, and provision of logistics and purchasing services. The Company purchases, develops, manufactures and distributes components such as C-parts, standard fasteners, magnets, magnet systems, and other standard and drawing-specific parts in metal, plastic, rubber, stainless steel, metal powder, wire and fabric. It serves a variety of industries, such as telecommunication, automotive, furniture, offshore, engineering, industrial construction, agriculture, aerospace and railway. The Company operates through subsidiaries in Sweden, Norway, Finland, France, Germany, China, Taiwan, Austria, Poland, the United Kingdom and the Netherlands, among others. Also, it operates Kian Soon Mechanical Components Pte Ltd in Singapore.