Bufab, which has been in the UK for 30 years, has paid an initial £54m to acquire Timco, whose full corporate name is TI Midwood & Co Limited.
Timco had been family-owned since its foundation in 1972 by Tim Midwood and is now run by his son, Simon Midwood, aged 49, as managing director. He will continue to run the business with the senior team at Timco, which is based in Nantwich, Cheshire.
The company made a pre-tax profit of £5.4m in 2020 on turnover of £49.7m and is expected to report a turnover of £60m for 2021.
The purchase price paid upon closing of the transaction amounts to £54m on a cash-free/debt-free basis. A performance-based additional payment may be made in 2023/24 depending on operating profit.
As an importer and wholesaler, Timco supplies more than 4,500 independent merchants across the UK and Ireland with screws, fasteners and fixings, nails, adhesives and chemicals, powertool accessories, hand tools, building hardware and site protection, security and ironmongery and PPE.
Bufab’s previous UK acquisitions include Montrose Group, Altiplas and Thunderbolts. Business development director Johan Sandberg said that Timco was Bufab’s biggest acquisition to date. “It is a significant and attractive add-on to our existing businesses in the UK. Timco is a very strong brand within C-parts (screws, fasteners and fixings, nails etc) to the construction industry and will significantly improve Bufab's customer offering in this market segment. This strategic expansion in the UK market further underlines our commitment to grow and widen our offering in new market segments and we are confident that Timco will continue to grow and to keep its strong entrepreneurial DNA and excellent customer service also as a member of Bufab group.”
Simon Midwood said: "This deal will enable us to accelerate our growth and continue expanding the range of products and services we offer, while still maintaining our first-class customer service. “
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