Zurich (awp) – SFS Group strengthens its tooling activities. The specialist in fastening systems from St. Gallen takes over its long-standing partner, the German company Hoffmann. The operation, the amount of which is not disclosed, significantly strengthens the Eastern Switzerland group, the Munich-based firm generating a turnover of around 1 billion euros (1.03 billion Swiss francs), more than half of the 1.9 billion expected by SFS this year.
A family-owned company, Hoffmann employs no less than 3,000 people in more than 50 countries and has a solid reputation in the European market, serving more than 100,000 customers through an assortment of 500,000 references, SFS Group said on Wednesday. . The transaction, which is expected to close in the first half of 2022, does not include the Contorion unit, active in e-commerce for other customer segments.
Once the acquisition is underway, the Bavarian company will form the second division of SFS Group in the Distribution & Logistics segment. The current shareholders of Hoffmann, who bring all the shares of the Munich-based company, will in the process become a major owner of the group located in Heerbrugg, the founding families Huber and Stadler / Tschan however continuing to hold more than 50%. .
During a conference call, SFS Group chief financial officer Jens Breu said the current Hoffmann shareholders will have a stake in the St. Gallen group of around 4%. In terms of profitability, the firm from across the Rhine shows a level equivalent to that of the Distribution & Logistics segment and it should make a positive contribution to this from the first year of its integration.
New directors and administrators
The transaction will be partly carried out in the form of SFS Group shares, the board of directors of the company intending to propose during an extraordinary general meeting scheduled for January 31, the creation of an authorized capital of 160,000 Swiss francs. , corresponding to a maximum of 1.6 million titles. This will take place to the exclusion of the subscription rights of existing shareholders.
The operation also entails changes within the governing bodies of the Saint-Welsh company. Current CEO of Hoffmann, Martin Reichenecker, will join that of the SFS group. In addition, Peter Bauschatz, who chairs the supervisory body of the Munich-based company, will be proposed as a director of SFS Group.
Investors have visibly tasted the big acquisition made by SFS Group, the title of the St-Welsh specialist in fastening systems taking off in the first exchanges. After starting the session up 4%, the SFS Group share continued to take off from the first exchanges, noting shortly before 10:10 am to 126.80 Swiss francs, a jump of 7.37%. At the same time, the extended SPI index lost 0.23%.
The Cantonal Bank of Zurich (ZKB) observes that the two companies are complementary and that the acquisition of Hoffmann should bring advantages to the SFS Group in terms of digitization, logistics, IT and purchasing. The acquisition also gives the company from Eastern Switzerland an increased international presence.
Bank Vontobel observes that the takeover of Hoffmann will allow SFS Group to significantly expand cross-selling. However, the establishment considers an evaluation of the transaction difficult, the parties having agreed not to disclose the amount of the latter.
vj / ol