Bufab has entered into an agreement to acquire all outstanding shares in the U.S. company, Components Solutions Group (CSG), with annual sales of approximately U.S. $30 million.
Bufab is a trading company, providing full-service solution as a supply-chain partner for sourcing C-parts. It was founded in 1977, and is now an international company with operations in 28 countries.
CSG is a distributor of fasteners and other C-class components in the North American market and is headquartered in Dayton, Ohio. CSG also owns three subsidiaries — two in Ohio and one in Kentucky.
“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.”
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, the company has expanded to a strong regional technically oriented supply chain partner with customers across many industries. It currently has 85 employees and net sales of approximately $30 million with a 10% operating profit.
“We are confident that CSG will continue to grow and thrive as a member of the Bufab Group,” added Lindqvist. “The acquisition of CSG also strengthens Bufab’s product and service range, says Urban Bülow, Group Director North America.”
The acquisition will be financed within Bufab’s existing credit facilities. The purchase price paid upon closing of the transaction amounts to $26 million on a cash and debt-free basis. A performance-related purchase consideration of a maximum of $10 million may be paid in 2023-2024, conditional on a significantly improved profit.
“By joining Bufab, we will be able to continue to improve our customer offering, grow our business, and strengthen our team in,” said Riling, majority owner of CSG. “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.”
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