Bulten, a major supplier of fasteners to the European automotive industry, is looking to extend its global reach with the acquisition of all shares in PSM International Holdings Limited (PSM). The new acquisition is expected to strengthen Bulten’s position in the international fasteners market, and particularly in North America and Asia, providing a strong platform for continued growth globally.
Founded in 1931, PSM develops, manufactures and supplies fasteners to international markets, primarily in the automotive industry. The company has about 350 employees, with production units in China, Taiwan and the UK, as well as distribution centers in 22 countries.
Asia-Pacific is the largest market and accounts for about 50% of PSM’s sales, followed by the United States, which accounts for about 30 percent.
“PSM has a strong brand as an innovative supplier of fasteners and I am very pleased to be able to announce this strategically important acquisition,” said Anders Nyström, president and CEO of Bulten. “Our operations complement each other well and the acquisition means that we will broaden Bulten’s customer base in our growth markets in Asia and North America, as well as strengthening our production capacity and our product offering.”
PSM’s customer base includes a number of large and well-known brands in the automotive, consumer electronics, and home appliances industries. During the 12-month period up to and including August 2019, PSM’s sales amounted to nearly USD 42 million (approximately SEK 395 million) with a normalized EBITDA margin of about 14 percent.
In addition, PSM’s growth potential in Europe is strengthened by Bulten’s strong position in this market,” added Nyström. “The acquisition is a milestone in Bulten’s development and I look forward to welcoming PSM to the Bulten Group.”
The acquisition purchase price amounts to USD 24.5 million (SEK 230 million) on a cash-free and debt-free basis and is financed through a vendor note of USD 8.5 million (SEK 80 million) — a transfer of 1,000,000 treasury shares in Bulten of USD 8.5 million (SEK 80 million) based on an assumed value of SEK 80 per share and a cash payment of USD 7.5 million (SEK 71 million). This is included in the existing financing agreement. The transfer of treasury shares to current PSM owners, EQT Greater China II, including a 12-month lock-up.
The completion of the acquisition is conditional upon certain actions taken by the seller and the acquisition is expected to be completed during the first quarter of 2020.