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Bufab has acquired 100 per cent of the shares in Montrose Holdings Ltd, "Montrose". Montrose is a privately owned UK company, supplying fasteners, other C-class components and associated services to industrial customers mainly located in the UK.
Montrose was founded in 1991 and has since then enjoyed stable and profitable growth. Today, the company has 45 employees, located in High Wycombe and Bedford, UK. In addition to fasteners, the company provides special components in a wide range of materials as well as products for maintenance, repair and operations (MRO). Customers are spread over many industries, including electronics, aerospace and construction. In the fiscal year which closed in August, 2016, Montrose had net sales of approximately GB￡ 6.4 million and an EBIT margin of approximately 10%.
The acquisition will be financed within Bufab''s existing credit facilities. Net of acquisition costs, the acquisition will have a negative effect on Bufab''s operating profit for the fourth quarter of 2016 of approximately SEK 4 million, but is expected to contribute positively to earnings per share starting from the first quarter of 2017.
"I am very pleased to announce the acquisition of Montrose, an excellent add on to our existing businesses in the UK and in Europe. Montrose is known as a reliable and innovative supply chain partner, and enjoys strong and long term customer relations. We expect both Montrose and the rest of Bufab to benefit from this combination", says Jörgen Rosengren, Bufab''s CEO. "We see Bufab as a leader in our industry. Bufab''s international presence and other resources will help Montrose develop and grow in the coming years. We are delighted to become a member of the Bufab Group, and look forward to our joint development going forward," comments Charles Ainsworth, managing director, Montrose.
-The 18th China(Guangzhou)Int’l Fastener
& Equipment Exhibition
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