Mirka wanted to expand its product and service portfolio into superabrasives and grinding solutions, often used by Mirka`s existing clients in addition to Mirka products. Synergy potential was identified within the sales of these products in utilizing Mirka`s global sales network as well as in Mirka`s product development knowledge and resources.
Mirka wanted to minimize the time-to-market and the management realized, that an internal organic product development work would be too time consuming and would require new know how. Hence, the management decided to acquire a leading company in this field.
Based on Mirka`s target profile ProMan made a market survey of possible acquisition targets. It was soon clear, that these types of companies were not to be found in the Nordics, but mainly in Germany, Switzerland and Italy. Based on the list of targets made by ProMan certain, most promising companies, were chosen to be contacted in different countries by ProMan and its local IMAP colleagues. The possible interest to change ownership was discussed and meetings were arranged with interested parties.
As an end result after several meetings and negotiations Mirka acquired 100 % of the shares of Cafro S.p.A., an Italian family owned company, which is a market leader in the field of diamond and CBN wheels as well as PCD and PCBN tools. Cafro’s tools are most typically used in precision grinding, turning and milling operations. In 2016, Cafro’s turnover was 10 million euros, 43 % coming from exports. Cafro has 79 employees in its production site in Italy and as sales representatives in 25 different countries globally.
Cafro was in the middle of a generation shift, where two 70 + year old brothers were considering passing over the ownership to the third generation, to their 3 children, that worked within the company. The family had come to realize, that the future development of the company would need stronger internationalization and investments in R&D, investments that the company would not have the resources to do after the generation shift. In order to secure the future development of the company, the family decided to sell the company. The third generation will continue in the company as key personnel.
According to Stefan Sjöberg, Cafro’s specialized knowledge and manufacturing capabilities and Mirka’s global presence create an excellent match for rapid business expansion. For Mirka, the acquisition of Cafro is a cornerstone for developing the business in precision grinding. In the future, the customers of both companies will benefit from a comprehensive offer of surface finishing and grinding solutions. For Cafro, the acquisition is an attractive opportunity to expand the business in the global market.
ProMan IMAP Finland was the buyer’s advisor in the acquisition.