MAB-listed NBI Bearings buys 3 companies and improves 2016 results

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Integral service around a transaction
BY : Diego GutiérrezDecember Wed, 2016
NBI, a bearings company, was floated on the MAB in 2015, after a few years in which the crisis in the sector hit hard. It has managed to recover and is now growing through purchase of companies in order to differentiate itself. It has also opened a new plant in Romania to enter an earlier stage in the value chain.
Activity of NBI Bearings

NBI Bearings Europe, is a Spanish company with more than a decade of experience, which researches and develops, designs, manufactures and markets high quality, high performance bearings directly to industrial machinery manufacturers.

This bearing market is a very competitive market, where there are strong international competitors and at the same time, it is difficult to differentiate the product. Therefore, the crisis has seriously affected this market. To face this threat, NBI is strengthening its commercial area. With the announcement of the acquisition of the manufacturing companies Egikor, Industrias Betico and Talleres Ermua, NBI Bearings will be able to reduce costs while enhancing the diversification of its product portfolio and customer base. In addition, NBI Bearings has launched its subsidiary in Romania. This team, located in a strategic centre, will allow the company to enter a previous phase of the product, which is the design phase. On the other hand, the start-up of the production plant in Álava is planned for 2017.

Financial data NBI Bearings

MAB-listed NBI Bearings buys 3 companies and improves 2016 results

In the first half of 2016, NBI Bearings increased its profits by 59.1% compared to the same period last year. In addition, NBI Bearings has reduced operating expenses and financial expenses, which has allowed it to grow Ebidta to €1.1M.

NBI expects that in 2017 the group can reach a turnover of over 20 million and 3 million Ebitda.

Purchases made

In September, NBI bought the companies EGIKOR, BETICO INDUSTRIES and ERMUA WORKSHOPS for €5M. The three companies have a total turnover of €11.324M and will provide the company with components of the bearing manufacturing value chain; in terms of stamping, bar turning and machining.

The expected additional turnover of the three companies in bearing manufacturing will represent 1.1 million euros for NBI Bearings. But the companies will also bring their customer portfolios in other segments, such as lift components.

The acquisition amount is equivalent to 3.17 times the EBITDA of the three companies, or €1.42m, recorded at year-end 2015.

NBI Bearings paid €3M in cash on 23 September. A 20% of the same amount will be paid over 12 months, and the remainder over 2 years.

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