Bulten has entered into an agreement to acquire all shares in Exim & Mfr Holdings Pte Ltd “Exim”, an Asian, Singapore-based distributor of fasteners and other components, for a purchase sum of approximately SGD 66.3 million (SEK 530 million) on a cash-free and debt-free basis. The acquisition affords Bulten a good platform to grow in new sectors, where the distribution stage is a pivotal sales channel.
The acquisition is expected to contribute to Bulten’s development and earnings, and to increase
earnings per share. Exim gives Bulten access to a large, broad customer base in growth sectors in
a dynamic region. The acquisition is an important part of Bulten’s strategy, which aims for growth
outside of the company’s primary customer group of automotive, and to improve risk
diversification, as well as margins.
Anders Nyström, President and CEO of Bulten Group, comments: “Our strategy sets out a clear
focus on balancing our sales through growth in customer groups beyond the automotive
industry. 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 a key to profitable growth in new sectors. 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. Exim’s base in
Singapore is also highly attractive. It enables us to take advantage of the strong growth in that
region, and we also see potential in using Exim’s sales network to increase sales for our factories
in China and Taiwan. Exim will, together with Bulten's rapidly growing business to consumer
electronics customers, constitute the beginning of a new industrial segment.”
Background
Exim & Mfr Holdings Pte Ltd is a privately owned company based in Singapore. Established in
1982, the company distributes fasteners and other c-parts*, along with related services from
more than 1,800 manufacturers and suppliers for American, European, Indian and Japanese
companies operating in Asia. The company has more than 1,000 customers in a range of sectors
including telecom, electronics, energy, medical technology, aviation, and other industrial
manufacturing. Exim has approximately 140 employees in Singapore, India, Indonesia, Malaysia,
Thailand, the Philippines and Vietnam, and annual sales of about SGD 40 million (SEK 320
million).
Purchase sum and completion
The purchase sum is approximately SGD 66.3 million (SEK 530 million) on a cash-free and debtfree basis. The sum will be paid in cash with equal financing from an existing credit facility with
Svenska Handelsbanken and an additional loan from the Swedish Export Credit Corporation. The
acquisition is expected to be completed during Q3 2023. The transaction cost is estimated at SEK
8 million.
KPMG, Drew & Napier, and Setterwalls are acting as advisers to Bulten in connection with the
acquisition.
Access to the shares is expected to take place on August 31, 2023, taking into account the
fulfillment of customary conditions according to the transfer agreement.
* Components with a low unit price that manufacturing companies stock in large quantities.
Questions related to the entered agreement regarding the acquisition can be asked at Bulten’s
presentation of the Q2 result on July 12.
Questions related to the entered agreement regarding the acquisition can be asked at Bulten’s
presentation of the Q2 result on July 12.
Webcast BultenQ2: https://ir.financialhearings.com/bulten-q2-2023
Teleconference Bulten Q2: https://conference.financialhearings.com/teleconference/?id=200812
For further information, please contact:
Ulrika Hultgren, SVP Corporate Communications & IR, +46 727-47 17 58,
ulrika.hultgren@bulten.com
Author: Ulrika Hultgren
