Borg Automotive acquires SBS Automotive
Borg Automotive, Europe’s largest automotive parts remanufacturing company, acquires SBS Automotive. Borg Automotive products are sold under four different brands Elstock, DRI, Lucas and TMI. The acquisition marks the addition of a new business component to Borg Automotive, opening the door to a new market in which the company is not currently active.
Borg Automotive, part of the Danish industrial conglomerate Schouw & Co, has concluded an agreement to acquire SBS Automotive. The addition of SBS Automotive is a component of Borg Automotive’s ambitious growth strategy, based on both organic growth and acquisitions. The first step was taken last year with the acquisition of the Spanish company Turbo Motor Inyección (TMI) which remanufactures turbo chargers. The purchase of SBS Automotive provides access to new markets, new customer segments, and new products.
Kim Kruse Andersen, CEO, Borg Automotive, says:
”We are very pleased to be able to welcome SBS Automotive as part of Borg Automotive. SBS adds significant revenue and a new dimension to our business, meaning that we will now be present in new markets. We will also be adding more product groups to our existing, wide product portfolio. SBS Automotive, just as Borg Automotive, has a strong focus on the positive customer experience, and we will be even more attractive to our customers in the future.”
SBS Automotive – Scandinavian Brake Systems
SBS Automotive, based in Støvring, Denmark, is a trading company creating value via purchasing, quality control, branding, stocking and distribution from their European distribution centres to a wide spectrum of distributors and purchasing groups primarily in Europe and Russia.
As the company name suggests, SBS offers a variety of product groups related to brake systems. The primary brake system products are discs, pads, shoes and calipers. In addition to brake related products the company also offers a broad range of steering components, wheel bearings and shock absorbers to the market.
The company has distribution centres in Denmark, Germany, France and Poland and a workforce of approx. 135 employees. In 2020, SBS Automotive had a turnover of DKK 455 million and an EBITDA of approx. DKK 20 million.
SBS Automotive primarily markets products under the recognised brand of NK, but also under the brand EuroBrake and private label. NK is used for all product groups and is widely distributed in established markets as a strong alternative to premium brands.
Mads Bonde, CEO of SBS Automotive, says:
”It means a lot to us to become a part of Borg Automotive. It is a very solid company with a strong position in the market, a unique business model and a competent organization. At the same time, we are very complementary in terms of both products and markets. Therefore, there is no doubt that it is the right partner for us to consolidate with. Being a part of Borg Automotive gives us access to additional resources which means, that we are able to strengthen our strategic plans and business development”.
Acquisitions forms an important part of Borg Automotive’s journey towards growth
Jens Bjerg Sørensen, CEO, Schouw & Co., says: "We have great ambitions for the development of Borg Automotive. It is our goal to realise a major, responsible, and long-term transformation of Borg Automotive, and we took the first step in 2020 with the acquisition of TMI. Acquiring SBS Automotive is a significant link in the strategic development, adding a new dimension to our market access and strengthening our reach and position in the market. Borg Automotive’s growth journey is far from over, and as active owners we are prepared for continued growth and development."
The acquisition is subject to the usual approvals and is expected to be finalised on 1 July 2021. Schouw & Co. publishes accounts for Q1 2021 on 6 May 2021, in which the revenue expectations and results for 2021 will be detailed.
After the acquisition, Borg Automotive will have approx. 1,850 employees and production in Poland, England, and Spain as well as sales offices in Denmark, Belgium, Germany, Russia, and France.
SBS Automotive and Borg Automotive will for a time continue as independent units, meaning that there will be no immediate changes to the current organisational structure in terms of activity areas and customer contact.