Trifast eyes European expansion through £22.5m acquisition in Italy
BIRMINGHAM fasteners manufacturer Trifast is planning to buy Italian firm Viterie Italia Centrale (VIC) for £22.5m.
The firm says the deal will enhance its European footprint.
VIC is also a fasteners manufacturer and is said to be a technological innovator, utilising its ‘know-how’ and customised approach in fastening applications in the white goods industry and taking it into different markets, including automotive and electronics sectors.
It has grown rapidly through integration and diversification of its product since its formation in 1964.
Key customers include Indesit, Whirlpool, Electrolux, Elica, BSH Bosch and Siemens.
Trifast says VIC’s offering is complementary to its own business model and significantly strengthens its presence in the domestic appliance market whilst also offering additional opportunities in existing electronic and automotive tier one markets.
It said the acquisition will extend the group’s customer base as well as increasing its overall business with limited overlap.
And it suggested it could grow the combined businesses by selectively investing in new facilities, plant and machinery.
Completion of the deal is expected on May 30, subject to general meeting approval.
The acquisition is to be funded from a new bank facility.
Malcolm Diamond MBE, executive chairman at Trifast, said: “We have often said that we recognise as a management team that to achieve our aspirations and take TR to the next level for all stakeholders we must add both organic and strategic growth through new products, sectors and territories to our existing global offering and underpin the many opportunities apparent within our existing and growing multinational portfolio.
“This Italian-based acquisition represents an excellent strategic fit for Trifast; VIC operates as a manufacturer of highly engineered parts mainly to the domestic appliance industry plus early development into automotive lighting components.
“This capability will enable Trifast to offer a wider range of threaded fasteners manufactured within the enlarged group’s facilities to these industry sectors, which we consider to be strategic for TR’s global aspirations.
“VIC has a young, experienced and motivated management team, led by Carlo Perini. Their focus and continued improvement on customisation has allowed the business not only to keep up with output markets’ technological development, but also to often act as an innovator, reinforcing its competitive positioning.
“As a board, we believe that VIC offers an opportunity for growth not only within the European market, but also utilising our sales and marketing resource, to offer technical expertise in white goods components to manufacturers in Asia and the United States thus providing a strong strategic rationale matched by a compelling financial case.”
