Bufab acquires VITAL – a leading Italian C-parts distributor

VITAL S.p.A. is a C-parts distributor headquartered in Milan, Italy, with two additional branch
offices. The company has been family-owned since its foundation in 1975, and is today run by
the founders' sons, who will continue to manage the business. The customers are primarily
located in Italy, and the customer base is well-diversified and active in industries such as
electrical, machinery, rail and construction.

VITAL has in recent years achieved excellent growth and profit. It has 57 employees and net
sales of EUR 48 million in 2023, with an operating profit margin above Bufab’s 2026 profitability target.

The purchase price paid today upon closing of the transaction amounts to EUR 31.9 million on a cash free/debt-free basis. In addition, a deferred purchase price of circa EUR 11 million will be paid in two instalments in 2025 and 2026. Finally, a performance-based additional payment (earn-out) of a maximum EUR 11.2 million may occur in 2025, 2026, 2027 and 2028 conditional on improved operating profit. The acquisition will be financed by Bufab's existing credit facility.

“I am very happy to announce this acquisition, as we see VITAL as a great opportunity to build up our Italian footprint and increase our service level to the customers we are currently supporting there. It is a stepping stone of a suitable size with a great reputation that in the future can be used as a platform for add-on acquisitions and drive market consolidation in a highly fragmented market. Furthermore, we see that Bufab and VITAL complement each other and we will deepen our presence in Italy and southern Europe by learning from the VITAL team with great and long experience in the region.”, says Erik Lundén, President and CEO of Bufab.

“Over the past two years, we have gotten to know Bufab very well, and are pleased to have found a partner in Bufab that is a perfect fit for us. This deal comes at a good time in VITAL’s development and will enable us to accelerate our growth journey, says the previous owners Daniele Pesce, Stefano Pesce and Luca Bernasconi. We are pleased that we, the previous owners, can continue as managers, and together with the whole VITAL family we look forward to the cooperation with Bufab.”

The transaction closed today and will be reported within Bufab's region Europe West. It will generate transaction costs of approximately 8 MSEK in the fourth quarter of 2024.

This information is information that Bufab is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-11-26 11:11 CET.

For further information, please contact:
Erik Lundén
President & CEO
+46 370 69 69 00
erik.lunden@bufab.com

Pär Ihrskog
CFO
+46 370 69 69 00
par.ihrskog@bufab.com

About Bufab
Bufab is a trading company that offers its customers a full-service solution as Supply Chain
Partner for sourcing, quality control, sustainability and logistics for C-Parts. Bufab was founded in 1977 in Småland, Sweden, and is an international group that today consists of more than 50 companies. The group has 1,700 employees in some 28 countries and annual sales of SEK 8.7 billion in 2023. The share is listed on Nasdaq Stockholm since 2014. Read more on www.bufabgroup.com