Fund: Segulah V
Sector: B2B Services
Acquisition: 2016
Responsible partner: Marcus Planting-Bergloo

Sandbäckens

“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.

Current portfolio

Case studies

Realized portfolio

  • Name Fund Sector Acquisition Exit
    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
    Gunnebo Industrier Segulah III, Segulah IV Industrial 2008 2019