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Proposed €27 million acquisition of Viterie Italia Centrale Srl (“VIC”) will enhance Trifast’s offering and European footprint

  • Class 1 acquisition of VIC, manufacturers and distributors of fastening systems (consideration: €27m; £22.5m)
  • VIC is complementary to the Group’s business model and significantly strengthens TR’s presence in the domestic appliance market whilst also offering TR additional opportunities in existing electronic and automotive tier 1 markets
  • Completion expected on 30 May 2014 subject to general meeting approval
  • Funded from a new bank facility and minimal dilution arising from the allotment of consideration shares to the vendor
  • A technological innovator, VIC is utilising its ‘know-how’ and customised approach in fastening applications gained from its leading position in the white goods industry and taking it into different markets, including automotive and electronics sectors 
  • VIC has grown rapidly through integration and diversification of its product since its formation in 1964 
  • VIC offers tailor-made solutions and a highly efficient logistics service to a strong customer base
  • Long-standing relationships and key customers encompass Europe’s leading manufacturers of white goods, including Indesit, Whirlpool, Electrolux, Elica and BSH Bosch and Siemens
  • VIC’s operational management team will benefit from Trifast’s global sales and marketing resources
  • Acquisition will extend the Group’s customer base as well as increasing TR’s overall business with limited overlap 
  • Significant opportunity to grow the enlarged business consistent with Trifast’s strategy and grow the combined businesses by selectively investing in new facilities, plant and machinery 
  • VIC will form a key additional part of Trifast’s future expansion by providing an additional competitive manufacturing facility in Europe to complement the Group’s existing resources in Asia
  • Acquisition will be earnings enhancing, self-managing without the need for synergies

Malcolm Diamond MBE, Executive Chairman, Trifast plc:

“We have often said that we recognise as a management team that to achieve our aspirations and take TR to the next level for all stakeholders we must add both organic and strategic growth through new products, sectors and territories to our existing global offering and underpin the many opportunities apparent within our existing and growing multinational portfolio."
 
“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’ technological development, but also to often act as an innovator, reinforcing its competitive positioning.” 
 
“As a Board, we believe that VIC offers an opportunity for growth not only within the European market, but also utilising our sales and marketing resource, to offer technical expertise in white goods components to manufacturers in Asia and the United States thus providing a strong strategic rationale matched by a compelling financial case.” 
"We look forward to providing further details with our Preliminary results next month.”
 

Trifast Plc: Proposed acquisition of Viterie Italia Centrale Srl (“VIC”) 7 May 2014