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Nordic Capital eyes IPO exit for Sweden’s Bufab

10 Feb 2014

Bufab, a Sweden-based manufacturing component company backed by private equity firm Nordic Capital, has confirmed plans to list on the Stockholm stock exchange.

The company offers its customers an integrated product offering that covers sourcing, quality assurance and logistics of ‘C-Parts’ – components such as nuts, screws and washers.

During the last ten years, Bufab has reported an average net sales growth of seven per cent, of which the organic growth amounted to aproximately four per cent. The Company reported net sales of SEK2.031bn in 2013 and an operating profit of MSEK201m, corresponding to an operating margin of approximately ten per cent.

Bufab has operations in 23 countries and is headquartered in Värnamo, Sweden.

The offering represents approximately 72.5 per cent of the total number of shares in the company. Shares will be sold at between SEK44 and SEK50 per share for a market cap of up to SEK1.9bn ($286m)

Ulf Rosberg, board member of Bufab and senior advisor at Nordic Capital, said, “Bufab has developed from a relatively small entrepreneurial company to an international market leader with global reach. The company has a strong platform and market position for continued growth. It is the view of the owners that Bufab is ready and well suited for a public listing.”

Nordic Capital closed its eighth buyout fund on €3.5bn in the final quarter of 2013. The firm had undergone a rocky fundraising for Fund VIII, which was initially targeting €4bn before being scaled back to €3bn in October last year. But a strong first close on €1.7bn in February this year sparked a flurry of interest in the vehicle, leading it to its 3.5bn hard cap as investor demand exceeded the new target by almost 30 per cent.

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