Bufab has acquired the Swedish company Rudhäll Industri AB including its three wholly owned subsidiaries with annual sales of approximately SEK 210 million (€20 million euros).
The Rudhäll Group is a producer and distributor of components and other C-parts to the Swedish and European markets, specialised in advanced machined components. It consists of three units in Sweden and one in China. Approximately half of the total sales are distribution and about half from in-house production. Rudhäll was founded in 1952 and has since 2004 been owned and run by its current Managing Director, Jesper Emanuelsson. Under his leadership, the company has expanded organically and via acquisitions to an international supply chain partner to customers across many industries. In 2017, Rudhäll Group had 74 employees and sales of approximately SEK 210 million with a 9% normalised operating margin.
Johan Lindqvist, Managing Director Bufab Sweden AB and responsible for the Group’s Swedish segment commented: "It gives me great pleasure to announce that Rudhäll Group is joining the Bufab Group. Rudhäll Group is known as a strong niche player in the Swedish and European markets. Over the past one and a half years, we have gotten to know Jesper and his team well, and see great similarities with Bufab in their solution-oriented, entrepreneurial approach to creating customer value. We are confident that the Rudhäll Group will continue to grow and thrive as a member of the Bufab Group. At the same time, we think that the acquisition will further strengthen Bufab's offering to our customers with enlarged product portfolio, additional in-house production know-how as well as increased sourcing capabilities in China.”
"By joining Bufab,” responded Jesper Emanuelsson, “we will be able to continue to improve our customer service and grow our business in the same way we have for many years, but now with increased resources. It will be business as usual, with the same high ambition level. I am pleased to continue as Managing Director of Rudhäll, and together with the whole team I look forward to the cooperation with the Bufab team globally.”
The acquisition will be financed within Bufab's existing credit facilities. The purchase price amounts to approximately SEK 100 million on an enterprise value basis, with the majority taken on closing of the transaction, which took effect immediately.
The Rudhäll Group is expected to contribute marginally to Bufab's earnings per share starting from the fourth quarter of 2018.
Having held senior management roles in leading automotive and fastener businesses, Phil joined Fastener + Fixing Magazine as editor in 2002. Convinced there is no substitute for ‘being there’, over 15 years of visits and interviews around the world means he has accumulated an extraordinary knowledge and perspective of the global fastener industry, reflected in his incisive and thought provoking reporting.