Bufab has agreed to acquire 100% of the shares in Apex Stainless Holdings Limited, a privately-owned UK company, specializing in the distribution of stainless steel fasteners, mainly to UK-based customers. The base purchase price amounts to approximately SEK 310M on an “enterprise value” basis, of which SEK 13M is placed in escrow conditional on a stable development in 2016. An additional performance-related purchase consideration of a maximum of SEK 39M may be paid out in 2017, conditional on improved profit in 2016.
The acquisition is financed through an extension of Bufab’s existing credit facilities. For the rolling 12-months period ended September 30, 2015, the acquisition would have impacted Bufab’s net sales by approximately SEK +300 million, EBIT by SEK +52 million, the profit after tax by SEK +35 million, and the earnings per share by approximately +0.90 SEK if it had been implemented October 1, 2014, excluding acquisitions costs. Net of acquisition costs, the acquisition will have a marginal negative effect on earnings per share for the fourth quarter of 2015, but is expected to contribute significantly to earnings per share starting from the first quarter of 2016.
