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Bulten Shares Rise Sharply on €44.5 Million Divestment of Manufacturing Arm
Shares of Bulten AB (publ) jumped on Monday after the automotive components supplier announced a binding agreement to divest its European contract manufacturing business to Swedish investment firm Maelir AB. The transaction carries an enterprise value of approximately €44.5 million, excluding leasing debt.
Details of the Transaction
The deal encompasses Bulten's manufacturing operations in Sweden, Germany, Poland, and Romania, which involve approximately 1,000 employees. The total consideration is expected to be approximately 273 million Swedish kronor (SEK) after adjustments for cash, debt, and working capital.
Bulten will receive around SEK 41 million in cash upon completion, with the remaining SEK 232 million structured as a secured vendor note. The divestment, which follows a strategic review announced in June 2025, is anticipated to close no later than October 2026, pending regulatory approvals.
Strategic Shift and Financial Impact
AdThis sale marks a significant strategic pivot for Bulten, creating a more focused and less capital-intensive company. According to President and CEO Axel Berntsson, the transaction provides "a clearer platform for profitable growth" by increasing exposure to value-added activities like C-Parts management, sourcing, and distribution.
Key financial implications for Bulten include:
- A reduction in annual net sales of approximately SEK 1.9 billion, or about 38% of the group's 2025 net sales.
- An expected positive effect on earnings per share on a pro forma basis, despite the sales reduction.
- A total write-down of approximately SEK 1.06 billion related to this deal and previously announced divestitures in the U.S. and China.
Following the sale, Bulten will retain its full-service provider business in the United Kingdom. The divested business will be reclassified as assets held for sale starting in the second quarter of 2026.