6/9/2014 12:01:00 AM
HEADLINES
Sweden’s FinnvedenBulten Sells FMS to Focus on Fasteners

Finnveden signed an agreement to sell its Metal Structures division to Shiloh Industries Inc., a U.S. supplier to the automotive industry, for SEK 490 million (US$74.3m).

With the sale of the metal structures division, Sweden-based FinnvedenBulten said it is focusing on fasteners.

Upon the sale, Bulten AB president Tommy Andersson becomes president and CEO of FinnvedenBulten AB.  Current CEO Johan Westman will join the Shiloh Group management as head of European operations, including heading FMS.  Andersson has been with FinmvedenBulten since 2000 and has automotive experience.

“Through the sale of FMS, FinnvedenBulten’s business will be entirely focused on the fast growing and international fastener business,” FinnvedenBulten chairman Roger Holtback said. “We see great opportunities for continued strong and sound growth. The financial position, that is considerable strengthened by today’s deal, creates better conditions to seize opportunities the coming years.”

FinnvedenBulten announced in February that it was evaluating a split of the Group leading to  the FMS sale. During the first quarter of 2014, FMS’s share of FinnvedenBulten turnover was approximately 36 %. Net sales for the full year 2013 were SEK 1,256 million (US$190m).

“Amid very tough competition, Bulten has managed to position itself as one of the three leading Full Service Providers in Europe and we have seen very strong development in recent years,” Andersson said. “The new business signed in 2013 with an annual value of around SEK 500 million, as well as the planned production start in Russia in 2014 and extended possibilities in China, means that we expect to see considerable organic growth the coming years.”

The transaction with planned takeover is schedule for June 30.

The intention is also to change the name from FinnvedenBulten AB to Bulten AB, which requires a general meeting.

FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten has divisions – Bulten and Finnveden Metal Structures.

As of March 31 2014, the Group’s sales 12-month rolling amounted to SEK 3,252 million (US$493m), of which division Bulten’s amounted to SEK 1,967 million (US$298m). FinnvedenBulten is listed on NASDAQ OMX Stockholm.  Web: finnvedenbulten.com 

Ohio-based Shiloh supplies automotive, commercial vehicle and other industrial markets from 14 North American locations. Shiloh is listed on the NASDAQ and  2013 sales totaled US$700 million.

“FMS and Shiloh complements each other very well,” Westman said. “The deal will create a competitive industrial structure with an excellent strategic fit within steel, aluminium and magnesium. Shiloh’s geographic presence in the US and Mexico is reinforced with a European presence and create good conditions for continued expansion.” ©2014 GlobalFastenerNews.com

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