Dré Lavrijssen sold a majority stake in VLH Welding Group, a wholesaler of welding supplies with over 10 million euros in revenue and thirty employees, to investor MKB Fonds. 'Some people think it was emotional for me to sell a part of the business, but this is one hundred percent the plan.'
Dré Lavrijssen knows his business, which has branches in Hapert and Driebergen-Rijssenburg, inside out. From the very beginning of VLH Lastechniek in 1989, he was the right hand of founder Rob van de Ven. A "jack of all trades," is how he describes his role in those early years. Lavrijssen was sales manager, but also directed the mechanics. And if necessary, he climbed onto the forklift himself.
In 2008, he and colleague Wim van der Sande became owners of the business through a management buyout. 'It was immediately our best year ever,' says Lavrijssen. The partners forged a plan for the future: generate good revenue for a few more years, reduce the dependence on the bank and then look for takeover candidates to grow the business. In 1997, they had already gained experience in this with the acquisition of Siduza Lastechniek, now part of the holding company as VLH Siduza. The two also agreed that Van der Sande would quit when he approached 60.
Not emotional
But after "the best year ever," came the financial crisis and the plans temporarily disappeared into the closet. Fortunately, VLH Welding came through the crisis unscathed. Soon, revenue was growing again year on year. So in 2018, sales plans were dusted off. Van der Sande wanted to sell his share, Lavrijssen wanted an investor who could support the dreamed buy-and-build strategy with knowledge and resources.
With adviser BDO Corporate Finance, the search was on for a suitable strategic partner. Soon, Amstelveen MKB Fonds came into the picture. Although the transaction ultimately took two years through the intervention of corona, the parties quickly agreed on the principles. Lavrijssen: "Some people think it was emotional for me to sell a part of the business, but this is one hundred percent the plan Wim and I had already conceived in 2008. I can now fulfill my dream and Wim is as free as a bird, just as we had imagined.'
One-stop-shop
The world of welding wholesalers, also known as "welding houses," is characterized by relatively small businesses that all do more or less the same thing, according to Lavrijssen. They supply all the equipment and products a professional welder might need, from welding tables and helmets to welding robots used by industrial businesses. VLH Welding Group also offers training and advises businesses on workshop design. In the welding field, this makes VLH a "one-stop shop" for the more than 1,000 businesses it supplies to. Those customers include sole traders, but also large businesses such as DAF, VDL and shipbuilders.
The distinguishing factor of VLH Welding Group is its knowledgeable employees, Lavrijssen says. 'Our salespeople are all welding engineers, some are even experts in a particular technique.' That type of specialist is thin on the ground. Hence acquisitions are the appropriate way to grow. Moreover, that way the product segment can be expanded and the geographic coverage increased.
'Many entrepreneurs in our industry are sales representatives who once started for themselves,' Lavrijssen says. 'As their businesses grow, they find that they don't enjoy the increasingly complex business operations. We take the administrative hassle out of their hands, so that together we can focus on growth.
Becoming the best
Lavrijssen is not letting the grass grow under his feet. Immediately after MKB Fonds came on board on Dec. 30, 2021, he began talks with other welding houses. Several businesses showed interest. A first acquisition has already been completed. Westbroek Welding & Safety will also come under the umbrella of VLH Welding Group. Lavrijssen expects more to follow. Yet it is not his ambition to become the 'biggest' with VLH Welding Group. 'I have no feeling about that. Above all, I want us to be and remain the best.'
