Bufab to become independent company, Finnveden to focus on automotive industry

2005-09-07 Press release

Bufab to become independent company, Finnveden to focus on automotive industry

Bufab provided possibility of international expansion, with own management and Board
Nordic Capital continues as owner 
Finnveden to focus entirely on automotive industry
Finnveden's Board of Directors has decided that the Bufab subsidiary will become an independent company. Bufab will have its own management and Board of Directors after previously having been organized as a business area within Finnveden.
Bufab is the leading company in the Nordic region in fasteners for the general industry and in recent years has also increased its rate of growth in Europe. Bufab reported sales in 2004 of about SEK 1.1 billion.
"We are prepared to stand on our own and are strong enough to meet the future as an independent company. We will now focus on developing our business concept and growing in Europe. This provides us better possibilities for growth and to participate in future structural transactions," says Hans Björstrand, President of Bufab.
Bufab's success is based on the company's concept as total supplier of fasteners combined with the company's efficient logistics solutions.
"We will continue our focus on efficient logistics solutions and development of special fasteners to retain and strengthen our leading market position in the Nordic region and to expand in Europe," continues Hans Björstrand.
By dividing the group, each company management and Board can focus on the development of its own business concept.
"The separation is a natural extension of our long-term strategy work with streamlining operations. Earlier we had already transferred part of our fasteners operations to Bufab and thereby clearly differentiated fasteners for general industry as a separate business area. The separation represents a further streamlining and is beneficial for both parties," says Tommy Boork, President and CEO of the Finnveden Group.
Bufab is a total supplier of fasteners and offers 100,000 items, including screws, bolts, washers and special fasteners. The product range includes customer-specific fasteners and standard products. The company also has three production units in Sweden that, among other products, produce special fasteners. The company has 460 employees in 11 countries. Some 75 employees work at the head office and central warehouse in Värnamo, Sweden. Bufab's current President and management are remaining with the company.
Bufab's corporate history traces back to 1977, when Bult Finnveden was founded. In 1986, 25 percent of the company was sold to Finnveden. In 1991, Finnveden acquired all of Bufab. In 2002, Bufab became Finnveden?s business area working exclusively with fasteners for general industry. In 2005, the company is again standing on its own. Hans Björstrand, President, founded Bult Finnveden in 1977.
Finnveden  posted sales of SEK 4.9 billion in 2004, of which Bufab accounted for 22 percent, or about SEK 1.1 billion. After the separation, Finnveden will be purely a supplier of fasteners, engine components and structural components to the automotive industry.
For additional information, contact:
Hans Björstrand, President, Bufab, +46 370-69 69 01, +46 70-690 65 40 
Tommy Boork, President and CEO, Finnveden, +46 31-734 59 10
Bufab is market leading in the Nordic region in fasteners for general industry. Bufab?s head office is in Värnamo, Sweden, with sales offices in Norway, Finland, Denmark, Germany, France, The Netherlands, UK, Poland, Hungary and China. Bufab had annual sales of SEK 1.1 billion in 2004, with 460 employees. www.bufab.com.
Finnveden is an international engineering group, with strong market positions in the automotive industry. Products include fasteners, engine components and structural components. Finnveden reported annual sales in 2004 of about SEK 4.9 billion, with 3,300 employees. Additional information is available on Finnveden?s website: www.finnveden.com