Jim Hooper

Bufab is acquiring California-based American Bolt & Screw Mfg. Corp. from Jim Hooper, who has owned ABS since 1982.

Founded in 1946, ABS distributes fasteners and C-class components in North America. ABS has branches in Indiana, Georgia, Texas, Oregon and Arizona, and is headquartered in Ontario, CA. In the fiscal year ending September 2019, ABS had 96 employees and US$52 million in revenue with an 11% normalized operating margin. Web: ABSFasteners.com

“Over many meetings in the past two years, we have gotten to know the company well, and see great similarities to Bufab in the solution-oriented, entrepreneurial approach to creating customer value. This strategic expansion into the North American market further underlines our commitment to growth, and to our Leadership 2020 strategy,” Bufab CEO Jörgen Rosengren said. “We are confident that ABS will continue to grow and thrive as a member of the Bufab Group.”

Bufab North American group director Urban Bülow said ABS “strengthens Bufab’s offering to global customers, and provides us with a stronger base for further expansion in North America.”

Added Hooper: “By joining Bufab, we will be able to continue to improve our customer service, grow our business and strengthen our team in the same way we have for the last decades. It will be business as usual, with the same high ambition level, but now as a part of a globally leading organization. I am pleased to continue as Senior Advisor to ABS, and together with the whole ABS team I look forward to the cooperation with Bufab.” 

The acquisition will be financed within Bufab’s credit facilities. A total of  US$30 million will be paid upon closing on a cash-free/debt-free basis plus US$30 million will be paid in installments and a performance-based payment may occur in 2023.

ABS is expected to contribute to Bufab’s earnings per share starting from the first quarter of 2020.

Founded in 1977 in Sweden, Bufab has operations in 27 countries. Bufab has 1,350 employees. Bufab’s net sales for the past 12 months amounted to Swedish Krone 4.2 billion (US$432 million) and the operating margin was 9.5%. Web: Bufab.com