Borg Automotive announcement
SILKEBORG, Denmark — Borg Automotive, Europe’s largest automotive parts remanufacturing company, has acquired SBS Automotive. Borg Automotive, which sells products under four different brands Elstock, DRI, Lucas and TMI, adds a new component, opening the door to a new market.
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.
”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,” said Kim Kruse Andersen, CEO, Borg Automotive, part of the Danish industrial conglomerate Schouw & Co. “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 centers to a wide spectrum of distributors and purchasing groups primarily in Europe and Russia.
[SBS Automotive is not to be confused with SBS Friction which was acquired last year by Brembo.]
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 centers 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 recognized 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.
”It means a lot to us to become a part of Borg Automotive,” said Mads Bonde, CEO of SBS 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”.
The acquisition is subject to the usual approvals and is expected to be finalized on July 1st.
SBS Automotive and Borg Automotive will for a time continue as independent units, meaning that there will be no immediate changes to the current organizational structure in terms of activity areas and customer contact.