PRESS RELEASE, Värnamo 21 Mars 2022
Bufab has acquired all outstanding shares in TIMCO (´TI Midwood & Co Limited`), in the UK, with annual sales of approximately GBP 60 million.
TIMCO is a market leading C-parts trading company and one of the UK’s leading one -stop-shops for independent merchants in the construction industry. It is headquartered in Nantwich, Cheshire, UK, with an additional sales office in Monaghan, Ireland. The company has been family-owned since its foundation in 1972 by Tim Midwood, and is currently run by Tim’s son, Simon Midwood, Managing Director. Under Simon’s leadership, TIMCO has expanded to become a one-stop-shop for over 4,500 independent merchants across the UK and Ireland, supplying essential products that trade professionals rely on every day, such as screws, fasteners and fixings, nails, adhesives and chemicals, powertool accessories, hand tools, building hardware and site protection, security and ironmongery and PPE. TIMCO has a very long and solid track record of achieving excellent growth and profit. In the twelve-month period ending December 2021, TIMCO had 187 employees and sales of approximately GBP 60 million with an 11% normalized operating margin.
The acquisition will be financed by Bufab's existing credit facility, which has been increased from 3 SEK billion to 4 SEK billion, with unchanged terms.
The purchase price paid upon closing of the transaction amounts to GBP 54 million on a cash-free/debt-free basis. A performance-based additional payment of maximum GBP 20 million may be made in 2023-2024 conditional on a significant improved operating profit.
“I am honoured and very happy to announce this acquisition, which is the largest acquisition so far for Bufab. It is a significant and attractive add-on to our existing businesses in the UK that will strengthen our position on the British market. TIMCO is a very strong brand within C-parts to the construction industry and will significantly improve Bufab's customer offering in this market segment. This strategic expansion in the UK market further underlines our commitment to grow and widen our offering in new market segments and we are confident that TIMCO will continue to grow and to keep its strong entrepreneurial DNA and excellent customer service also as a member of Bufab group”, says Johan Sandberg, Director Global Business Development and Group Director UK.
" This deal comes at a good time in TIMCO’s development and will enable us to accelerate our growth and continue expanding the range of products and services we offer, while still maintaining our first-class customer service. We look forward to working with our new colleagues at Bufab in driving the company forward.” says Simon Midwood, Managing Director at TIMCO.
The transaction closed today and will be reported within Bufab's segment UK/North America. It will generate transaction costs of approximately 10 MSEK in the first quarter of 2022.
For further information, please contact:
Johan Sandberg, Director Global Business Development & Director UK, telephone: +46 70 538 44 74
Johan Lindqvist, CEO, telephone: +46 370 69 69 17
Marcus Söderberg, CFO, telephone: +46 370 69 69 66
This information is information that Bufab AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 19.40 CET on March 21, 2022.
Bufab AB (publ), Corporate Registration Number 556685-6240, is a trading company that offers its customers a full-service solution as Supply Chain Partner for sourcing, quality control and logistics for C-Parts (screws, nuts, etc.). Bufab’s Global Parts ProductivityTM customer offering aims to improve productivity in the customers’ value chain for C-Parts.
Bufab was founded in 1977 in Småland, Sweden and today is an international company with operations in 28 countries. The head office is located in Värnamo, Sweden, and Bufab has about 1,500 employees. Bufab’s net sales for the past 12 months amounted to SEK 5.9 billion and the operating margin was 11.8 percent. The Bufab share is listed on Nasdaq Stockholm, under the ticker “BUFAB”. Please visit www.bufab.com for more information.