Bufab Acquires Component Solutions Group, Inc.
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Bufab has entered into an agreement to acquire all outstanding shares in the US company Components Solutions Group, Inc, (“CSG”), with annual sales of approximately USD 30 million.
CSG is a leading distributor of fasteners and other C-class components in the North American market and is headquartered in Dayton, Ohio. CSG also owns three subsidiaries whereof two are located 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 to a strong regional technically oriented supply chain partner with customers across many industries. CSG has currently 85 employees and Net Sales of approximately USD 30 Million with a 10% operating profit.
"It gives me great pleasure to announce that CSG is joining the Bufab Group. 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, says Johan Lindqvist, Bufab’s acting President and CEO. “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, says Urban Bülow, Group Director North America.
"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 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”, says Ernie Riling, majority owner of CSG.
The acquisition 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.
CSG is expected to contribute to Bufab’s earnings per share starting from the fourth quarter of 2021.