Bufab is to acquire all outstanding shares in US company Components Solutions Group, Inc (CSG).
CSG is a distributor of fasteners and other C-class components in the North American market and is headquartered in Dayton, Ohio. It owns three subsidiaries (two in Ohio, one in Kentucky).
Founded in 2000, CSG has been mainly owned and run by its current President Ernie Riling and his colleagues and minority owners Matt Coy, Ken DeCrane, Thomas Girgash and Rick Clark. Under their leadership, CSG has expanded to a strong regional technically oriented supply chain partner with customers across many industries. CSG has currently 85 employees and net sales of approximately US$ 30 Million with a 10% operating profit.
"It gives me great pleasure to announce that CSG is joining the Bufab Group,” said Johan Lindqvist, Bufab’s acting President and CEO. “Over many meetings in the past years, we have gotten to know the company well, and see great similarities to Bufab in the solution-oriented, entrepreneurial approach to creating customer value.”
Urban Bülow, Group Director North America, added: “We are confident that CSG will continue to grow and thrive as a member of the Bufab Group. The acquisition of CSG also strengthens Bufab’s product and service range.”
Ernie Riling, majority owner of CSG, said: "By joining Bufab, we will be able to continue to improve our customer offering, grow our business and strengthen our team in. It will be business as usual, with the same high ambition level, but now as a part of a globally leading organisation. I am pleased to continue as President and CEO at CSG, and together with the whole CSG team I look forward to the cooperation with Bufab.”
The acquisition will be financed within Bufab's existing credit facilities. The purchase price paid upon closing of the transaction amounts to USD 26 million on a cash- and debt-free basis. A performance-related purchase consideration of a maximum of USD 10 million may be paid in 2023-2024, conditional on a significantly improved profit.
The acquisition took effect this week and will be reported within Bufab's segment UK/North America. It will generate transaction costs of approximately 6 MSEK in the third quarter of 2021.