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Trifast to Acquire Viterie Italia Centrale
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2014-07-25
Trifast PLC announced it has conditionally agreed to acquire the entire issued quota holding of Viterie Italia Centrale (VIC), a fastener manufacturer and distributor based in Fabriano, central Italy, for an aggregate consideration of 27 million euros.
Completion is expected shortly after a Trifast General Meeting scheduled for 30th May to obtain shareholder approval.
Founded in 1964 by the Perini family, VIC predominantly manufactures and distributes fastening systems for the white goods industry, numbering most of the major OEM brands as customers, and has recently expanded into automotive lighting fastening components. VIC reported sales of 27 million euros in 2013 generating profit before tax of 5.4 million euros. VIC recorded sales growth of 7% and 16.75% in 2011 and 2012 respectively.
Trifast sees a strong cultural fit between VIC and TR Fastenings, significant as management is planned to remain in the hands Carlo Perini. There are also strong opportunities to roll out VIC’s successful business model further in Europe and into Asia and the United States. The acquisition presents two other strategic benefits to Trifast. As well as increasing the Group’s share of business into the domestic appliance sector it provides it with a competitive alternative manufacturing source within Europe, allowing it to cut lead times and transport costs. The factory is well integrated with a computer monitored production plant, in parallel with in-house heat treatment and zinc electroplating surface finish lines, all of which, says Trifast, enhances the scope for lean manufacturing and sophisticated cost monitoring.
Trifast Chairman, Malcolm Diamond, commented: "This Italian based acquisition represents an excellent strategic fit for Trifast; VIC operates as a manufacturer of highly engineered parts mainly to the domestic appliance industry plus early development into automotive lighting components; this capability will enable Trifast to offer a wider range of threaded fasteners manufactured within the enlarged Group's facilities to these industry sectors, which we consider to be strategic for TR's global aspirations."
"VIC has a young, experienced and motivated management team, led by Carlo Perini. Their focus and continued improvement on customisation has allowed the business not only to keep up with output markets' technologicaldevelopment, but also to often act as an innovator, reinforcing its competitive positioning."
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