• SFS Group AG and Hoffmann SE join forces
• The merger provides a good basis for further international growth with an even broader product and service offering for customers
• Closing of the transaction expected in the 2nd quarter of 2022

SFS Group AG and Hoffmann SE signed their merger agreement yesterday. The two medium-sized groups are thus entering a new phase of close cooperation and international growth. All shares in Hoffmann SE will be acquired by SFS Group AG upon completion of the transaction. The current shareholders of Hoffmann SE will become substantial shareholders of SFS Group AG. The CEO of HSE, Martin Reichenecker, will join the Group Executive Board of SFS.

SFS is established in the market as a successful technology group with activities in many fields, such as mechanical fastening systems or precision components. Hoffmann is the market leader for quality tools in its European core markets, where it supplies over 135,000 customers. The joining of forces marks a milestone and creates significant development opportunities for both. There are overlaps not only on the customer side, but above all in the area of tools. At SFS, tool trading is part of the "Distribution & Logistics" segment. In this business segment, SFS has been acting as a partner of the Hoffmann Group on the market for many years. As an international system partner, Hoffmann SE contributes innovative expertise in many areas to the SFS Group.

Contorion, the eCommerce subsidiary of Hoffmann SE in Berlin, is not part of the merger. The close interrelation between Hoffmann SE and Contorion will continue in a relationship based on partnership in the coming years. All other Hoffmann SE subsidiaries will remain a 100% subsidiary under the present company name.

"By bringing in Hoffmann, SFS can internationalize its trading business in attractive product areas and create the basis for further growth," Jens Breu (CEO of SFS Group) is convinced. "The long-standing successful cooperation between our companies and a similar corporate culture is an excellent foundation for future joint success." Martin Reichenecker, Chairman of the Board of Hoffmann SE and future member of the SFS Group Executive Board, also emphasizes: "Hoffmann SE will consistently continue on its chosen strategic path and additionally realize benefits from the new constellation for the benefit of our customers and thus also of both companies.

The parties have agreed not to disclose the economic terms of the transaction. The transaction is subject to customary closing conditions. Closing of the transaction is expected in the first half of 2022.

SFS Group AG is a mechanical fastening systems and precision components company. Its headquarters are located in Heerbrugg, Switzerland. SFS employed around 10,000 people worldwide in the 2020 financial year and generated sales of CHF 1.7 billion.

Hoffmann SE is active in the trade and manufacturing of tools, factory equipment and personal protective equipment, and offers related consulting and services. The company’s headquarter is located in Munich. Hoffmann SE employs around 3,600 people and achieved a turnover of around 1.1 billion euros in 2020.