Fund:
Segulah V
Sector:
B2B Services
Acquisition:
2016
Responsible partner:
Marcus Planting-Bergloo
“Sandbäckens has shown strong growth over these years, both in terms of revenue and profitability. We are very thankful for the support we have received from Segulah”, says Mats Åström, CEO, Sandbäckens.
Sandbäckens is a leading Swedish provider of heating & sanitation installations as well as sprinkler solutions and fire protection systems. Founded in Linköping 1993, the Company had more than 800 employees in over 30 operating subsidiaries across Sweden by the end of 2020. Sandbäckens reported pro-forma financials of revenue SEK 1,480m and EBITDA SEK 134m in 2020.
Opportunity. The investment rationale was fivefold: (i) continued organic growth via establishment of new geographic operating companies, (ii) focus on increasing the share of service revenues, (iii) pursue add-on acquisitions in order to consolidate a fragmented market, (iv) further develop the Sprinkler business segment, and (v) implement operational improvements.
What did Segulah provide? Through extensive previous experience in the market and a wide network of relevant advisors, Segulah was able to establish a clear value creation plan and assist management with the execution. The plan primarily entailed a geographic expansion and increased focus on the sprinkler business segment, as well as multiple organisational and operational improvements to increase profitability, decrease project risk and improve cash flow through optimised working capital.
Moreover, management, with the support of Segulah, completed eight add-on acquisitions in total during Segulah V’s holding period, successfully contributing to consolidating a fragmented market.
The result. On March 1, 2021, Sandbäckens was divested to KLAR Partners, a mid-market private equity fund, for an undisclosed amount. The returns from the transaction to investors in Segulah V were well above target.
During Segulah V’s five-year holding, revenue more than doubled while EBITDA increased more than threefold as a result of significant profitability improvements. At exit, the EBITDA margin amounted to c. 9%, in line with profitability of larger peers in the industry.
In addition, Sandbäckens established itself as the national market leader within Sprinkler installations while maintaining its leading local market positions within Heating & Sanitation.
| Name | Fund | Sector | Acquisition | Exit |
|---|---|---|---|---|
| NVBS Rail | Segulah V | B2B Services | 2020 | 2022 |
| Semantix | Segulah V | B2B Services | 2015 | 2021 |
| Conapto | Segulah V | IT/Technology | 2018 | 2021 |
| Docu Nordic | Segulah IV | B2B | 2014 | 2017 |
| Sandbäckens | Segulah V | B2B Services | 2016 | 2021 |
| Zengun | Segulah V | Construction | 2016 | 2019 |
| Teknikmagasinet | Segulah V | Retail | 2015 | 2018 |
| Mitt i | Segulah IV | Media | 2014 | 2019 |
| Oglaend Industries | Segulah IV | Manufacturing & Industrial Goods | 2014 | 2017 |
| eTRAVELi | Segulah IV | IT/Technology | 2010 | 2015 |
| Byggfakta Scandinavia | AB Segulah | Information services | 1996 | 1998 |
| EKH Ekonomihuset | Segulah I | Pension trusts | 1997 | 1999 |
| Wilkenson Handskmakar´n | AB Segulah | Retail | 1994 | 1997 |
| Teli Service | Segulah I | Repair & logistic services | 1997 | 2002 |
| Modul-System | Segulah I | Vehicle interior fittings | 1999 | 2002 |
| Norfoods | Segulah II | Food | 2000 | 2004 |
| EEN | Segulah I | Music & entertainment | 1999 | 2004 |
| CCS, Clean Chemical | Segulah II | Skin- and eye care | 2003 | 2004 |
| NVS Installation | Segulah II | HVAC installation | 2002 | 2006 |
| HMS Industrial Networks | Segulah II | Communication technology | 2004 | 2007 |
| Previa | Segulah II | Occupational health | 2004 | 2007 |
| Kosan Crisplant | Segulah II | LPG supplies | 2004 | 2008 |
| Callenberg Group | Segulah II | Marine electronics | 2001 | 2008 |
| Joy | Segulah III | Retail | 2006 | 2009 |
| Isaberg Rapid | Segulah III | Office supplies | 2007 | 2009 |
| NEA-gruppen | Segulah III | Electrical installation | 2006 | 2010 |
| Exotic Snacks | Segulah III | Food | 2008 | 2011 |
| Skandinavisk Kommunalteknik | Segulah III | Sewage systems | 2008 | 2011 |
| InfoCare | Segulah II | Electrical repair | 2004 | 2012 |
| Medstop | Segulah IV | Pharmacies | 2010 | 2013 |
| PMC Group | Segulah III | Hydraulics | 2005 | 2015 |
| S:t Eriks | Segulah III | Building products | 2005 | 2015 |
| Kemetyl | Segulah III | Chemicals | 2007 | 2016 |
| Almondy | Segulah III | Confectionery | 2008 | 2015 |
| Scan Coin | Segulah IV | Cash handling | 2010 | 2015 |
| CCS Healthcare | Segulah IV | Healthcare | 2011 | 2019 |
| Balco | Segulah IV | Manufacturing & Industrial Goods | 2010 | 2021 |
| Gunnebo Industrier | Segulah III, Segulah IV | Industrial | 2008 | 2019 |
