Bossard acquires part of KVT Group


The Bossard Group, manufacturers of fasteners and fastening elements with its headquarters in the city's Steinhauserstrasse, has announced it is to acquire the KVT Koenig Group's fastening technology division for CHF 200 million.
 
The company announced on Thursday that it plans to finance the part takeover with the help of a bank loan with completion expected by the end of November.
 
The KVT Group, which belongs to the unlisted Capvis and HgCapital privately held companies, currently employs 230 people and has an annual turnover of some CHF 120 million. It has a range of 70,000 products supplying its customers in German-speaking countries from Dietikon near Zurich, Asten and Linz in Austria and from its headquarters in Illerieden near Tübingen in Germany (photograph).
 
Bossard feels that, in acquiring this fastening element division of the KVT Group, it can supplement its own range. The Bossard Group, which employs 1,600 people in 50 different locations, itself achieved a turnover of CHF 474 million in 2011.
 
Despite this opportunity for the firm to grow, some analysts, such as the Vontobel Bank, have been critical of Bossard's move. While it acknowledges the acquisition is a big step which makes strategic sense for Bossard Group, the bank feels it might dilute profit per share. Indeed, following the announcement, the Bossard Group's share price fell by 0.5%, whereas the Swiss Performance Index showed a 0.1% plus.
 
The KVT Group's origins go back to 1927, when Max Koenig of Zurich made sheet metal for the lightweight construction industry. It became the Dr Ing Koenig AG company in the Sixties with a subsidiary known as Koenig Verbindungstechnik GmbH set up in Illerieden in the Seventies. It was in 1985 that the company became known as Koenig Verbindungstechnik AG (KVT). In the decade since 2000 the company has expanded into both eastern Europe and in the USA with national organisations founded in Brazil and China over the past two years. 


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