Bulten AB, a supplier of fasteners to the international automotive industry, has entered into an agreement to acquire all shares in Exim & Mfr Holdings Pte Ltd., a Singapore-based distributor of fasteners and other components.
The acquisition will allow Bulten a good platform to grow globally, where the distribution stage is a pivotal sales channel.
The acquisition affords Bulten a good platform to grow in new sectors, where the distribution stage is a pivotal sales channel. The purchase was for approximately SGD 66.3 million (SEK 530 million) on a cash-free and debt-free basis.
“Our strategy sets out a clear focus on balancing our sales through growth in customer groups beyond the automotive industry,” shared Anders Nyström, president and CEO of Bulten Group. “The aim is for these to account for at least 20% of sales by 2025. The acquisition of Exim takes us into the distribution stage, which is key to profitable growth in new sectors.”
Established in 1982, Exim distributes fasteners and other c-parts to more than 1,800 manufacturers and suppliers for American, European, Indian, and Japanese companies operating in Asia.
This acquisition is expected to contribute to Bulten’s development and earnings, increasing its earnings per share. Exim gives Bulten access to a large, broad customer base in growth sectors in a dynamic region. It’s also in line with Bulten’s strategy, which aims for growth outside of the company’s primary customer group of automotive and to improve risk diversification and margins.
“Exim is a well-managed company with an international customer base and developed processes for distribution and Vendor Managed Inventory (VMI), which is suitable for industries with completely different purchasing patterns than Bulten has historically been used to,” added Nyström. “Exim’s base in Singapore is also highly attractive. It enables us to take advantage of the strong growth in that region.”
Filed Under: Fastener industry news