Beijer Alma’s subsidiary Lesjöfors completes acquisition in the US
Beijer Alma’s subsidiary Lesjöfors AB has purchased the power spring operations of Sandvik Materials Technology – a leading manufacturer in the US market. The company has approximately 60 employees and revenue of about MSEK 100. The largest customer segment is the industrial and construction sector.
The acquired business, which operates plants in both the US and Mexico, is a leader in the specialty area of power springs. The company’s principal market is the NAFTA zone – the free trade area encompassing the US, Canada and Mexico – which accounts for slightly more than 90 percent of its sales.
“This acquisition marks a milestone for Lesjöfors and Beijer Alma. Lesjöfors has been undergoing profitable expansion for a number of years, not only in the Nordic region but also across Europe and Asia. We are now crossing the Atlantic and further boosting the company’s growth by entering this major market for springs,” says Bertil Persson, President and CEO of Beijer Alma.
Construction and engineering sector dominates
Most of the company’s manufacturing focuses on custom-designed springs. The company’s products are used in a range of consumer and industrial products, as well as in the construction and engineering sector, which represents its largest customer segment.
“This acquisition has strengthened our presence in the US spring market and will provide us with the scope for further expansion in North and South America,” says Kjell-Arne Lindbäck, President and CEO of Lesjöfors AB.
“It has also strengthened our offering in the area of power springs, which will benefit our companies with operations in Europe and Asia,” he continues. “The acquisition will also open the door to attractive sales opportunities for Lesjöfors’s other spring products in the US market.”
The company, whose US operations were established in 1926, has its headquarters and US plant in Scranton, Pennsylvania. The plant in Nogales, Mexico, was established in 1989 and currently accounts for about 70 percent of the company’s manufacturing volume. The company has approximately 60 employees and revenue about MSEK 100 (MUSD 15). The operations have historically displayed favorable profitability and a strong business trend. Following the acquisition, Lesjöfors now has 21 manufacturing units in ten countries.
The transaction was conducted as an asset-transfer acquisition.
Further information:
President and CEO Bertil Persson, Beijer Alma AB, tel: +46 (0)8-506 427 50
President and CEO Kjell-Arne Lindbäck, Lesjöfors AB, tel: +46 (0)70-574 99 94
Beijer Alma AB (publ) is an international industrial group that focuses on component production and industrial supplies. The Group includes Lesjöfors, one of Europe’s largest spring manufacturers, Habia Cable, one of Europe’s largest manufacturers of custom-designed cables and Beijer Tech with strong positions in industrial supplies in the Nordic region. Beijer Alma is listed on the NASDAQ OMX Stockholm Mid Cap list.
Lesjöfors is one of Europe’s largest spring manufacturers and has the broadest product range in the market. During 2013, the company reported sales of SEK 1.7 billion and had 1,400 employees. Lesjöfors has operations in Sweden, Norway, Finland, Denmark, the UK, Germany, Slovakia, Latvia, Russia, China and Korea.
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