SFS is deepening its strategic partnership with HECO, a leading manufacturer of fastening solutions for structural timberwork, and raising its interest in the German company to 51%.
In August 2015, HECO (Ludwig Hettich GmbH & Co. KG) and SFS signed an agreement establishing a strategic partnership. SFS concurrently acquired a minority interest of 30% in HECO. Both companies are active in the structural timber market and have built strong reputations for quality and innovation. Thanks to the two companies’ largely complementary product portfolios, customers have since benefited from a more comprehensive range of products and services. Close collaboration between the two partners has created operational synergies in their manufacturing operations and sharpened their competitiveness.
This two-year old partnership has yielded very positive results for both HECO and SFS. The advantages are becoming increasingly visible, both on the sales and the manufacturing front.
In a move to further strengthen this strategic partnership, SFS will increase its stake in HECO to 51% effective 1 July 2018. This will allow both companies to better capture growth and synergy potential and take better advantage of their respective competencies. Acquiring a majority interest in HECO will facilitate the targeted improvement in HECO’s performance within the SFS Group and have a positive effect on the headcount and business activity at the different HECO locations. HECO generated EUR 41 million in sales in 2017 and employed 322 employees (end of 2017). The company will be consolidated by SFS Group as of 1 July 2018.