Bufab Acquires Italy's Leading Fastener Distributor VITAL

On November 26, 2024, local time, Bufab successfully completed the acquisition of VITAL S.p.A., a leading distributor of C-class parts in Italy. VITAL S.p.A., headquartered in Milan, Italy, with two branches, has been operated by the descendants of the founders since its establishment as a family business in 1975. The company focuses on serving customers in various industries such as electrical, mechanical, railway, and construction, boasting a highly diversified customer base primarily located in Italy. In recent years, VITAL S.p.A. has achieved significant growth and profitability, employing 57 staff members and realizing a net sales volume of 48 million euros in 2023, with an operating profit margin even exceeding Bufab's profit target for 2026. The total transaction value of the acquisition is 31.9 million euros (cash-free/debt-free), plus approximately 11 million euros in deferred purchase price, which will be paid in two installments in 2025 and 2026. Additionally, based on the improvement of operating profits in the coming years, an additional performance-based payment of up to 11.2 million euros may be made, which will be determined between 2025 and 2028. The entire acquisition process will be funded by Bufab's existing credit facilities.

Bufab is highly satisfied with this acquisition, believing that VITAL S.p.A. not only provides a great opportunity for its business expansion in Italy but also enhances the service level to local customers. VITAL S.p.A. is seen as a well-established mid-sized cornerstone that can serve as a platform for further acquisitions and drive integration in a highly fragmented market. At the same time, Bufab looks forward to deepening its business in Italy and Southern Europe by learning from the VITAL S.p.A. team, which has rich regional experience.

The former owners of VITAL S.p.A., Daniele Pesce, Stefano Pesce, and Luca Bernasconi, also have a positive view of this transaction, considering it a good time in the development of VITAL S.p.A., which will accelerate its growth trajectory. They are delighted to join forces with a partner like Bufab and look forward to continuing as company managers, welcoming the collaboration with Bufab along with the entire VITAL family.
The acquisition transaction has been completed today and will be included in Bufab's business reporting for the Western European region. The transaction is expected to incur approximately 8 million Swedish kronor in transaction costs in the fourth quarter of 2024.

Bufab was founded in 1977, with its headquarters in Varnamo, Sweden, and is an international company operating in 28 countries. Bufab is listed on the Nasdaq Stockholm Stock Exchange under the ticker symbol "BUFAB."
The Bufab Group holds a significant position in the production and trade of fasteners for electronic products and is a supplier to renowned companies such as Ericsson, Nokia, Sony Ericsson, and Motorola. The Group, part of the Nordic Capital group, is affiliated with the Swedish Bufab Group and has branches and warehouses in multiple countries and regions to support the needs of its global customers.

The Bufab Group has a factory in Ningbo, located in the Yinzhou district, and logistics centers in Beijing and Xiamen, China, to better serve customers in the north and south. The company is committed to providing comprehensive supply chain solutions, including procurement, quality control, and logistics services, aimed at improving customers' production efficiency in the C-Parts (such as screws, nuts, etc.) value chain.