Trifast expands European operations with £6m German acquisition
INDUSTRIAL fastenings group, Trifast has expanded its European operations with the £6m acquisition of a German firm.
Trifast, which has a large operation in Birmingham, has purchased industrial distributor Kuhlmann Befestigungselemente for £6.16m.
Of this, £4.9m was paid on completion in cash and £0.03m has been satisfied by the allotment of 29,350 ordinary shares in the company. The outstanding £1.23m will be deferred for 12 months and will serve as a retention against any potential warranty or indemnity claims.
The cash consideration is being met from Trifast’s existing bank facilities.
Following the deal, Trifast will be investing into Kuhlmann to further develop opportunities in the German market. It expects Kuhlmann to be earnings enhancing in the first full year of ownership.
Based in Verl, close to Bielefeld, Kuhlmann was founded in 1996 and employs 18 staff. Trifast said it was a well-respected, highly efficient distributor of industrial fastenings within the domestic German market. Its emphasis is on delivering high quality products and services to a well-established customer base in the machinery and plant engineering, sheet metal processing and industrial sectors.
Kuhlmann’s management team and previous owners, Frank Niggebrügge, Eric Hütter and Peter Henning will continue to run the business with the support of the operational management team and staff, who will remain within the business.
For the year ended December 31, 2014, Kuhlmann reported revenue of €6.70m (£4.86m) and profit before tax of €1.74m (£1.26m). Gross assets at the same date were €1.43m (£1.04m).
Trifast said Germany was the fourth largest industrial fastener market globally and the biggest in Europe. Over the last five years Trifast has successfully developed its export business and last year sales into Germany contributed around £7m.
It said to further enhance its reputation and presence in this important market the directors had considered it strategically beneficial to establish a strong domestic distribution and logistics facility within Germany.
Commenting on the deal, Malcolm Diamond, Trifast’s executive chairman, said: “As investors know, we have a strong philosophy when it comes to acquiring businesses – profitable businesses, in our key sectors, backed up by respected and experienced management. Kuhlmann provides just this and the base from which to grow our presence and sales into the largest manufacturing country in the EU region. Everyone at Trifast looks forward to working with the Kuhlmann team to achieve this objective.”
Trifast’s chief executive, Mark Belton added: “This is a very positive step for both Trifast and Kuhlmann. Having already built a close trading relationship between our two businesses and respective management teams, we are now establishing a strong local presence and a base for what we see as an exciting opportunity for both Trifast and Kuhlmann.
“We are confident that combining local knowledge and culture with increased technical expertise, in what is the largest industrial market in Europe, will enable us to leverage the group’s existing business and open up additional opportunities for further growth, both locally and internationally.”
