Bufab acquires Component Solutions Group
Bufab has entered into an agreement to acquire all outstanding shares in the US company Components Solutions Group, Inc (CSG).
CSG, headquartered in Dayton, Ohio, is a distributor of fasteners and other C-class components to the North American market. It also owns three subsidiaries — two in Ohio and one in Kentucky. CSG was founded in 2000, and 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 into a technically oriented supply chain partner with customers across many industries.
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.
Mr Riling added,
By joining Bufab, we will be able to continue to improve our customer offering, grow our business and strengthen our team. It will be business as usual, with the same high ambition level, but now as a part of a globally leading organization. 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 $26mn on a cash- and debt-free basis. A performance-related purchase consideration of a maximum of $10mn may be paid in 2023-2024, conditional on a significantly improved profit.
Bufab was founded in 1977 in Småland, Sweden, and now has operations in 28 countries. The company offers a full-service solution as supply chain partner for sourcing, quality control and logistics for C-parts (screws, nuts, etc).