FSN Capital IV has acquired five high quality technical installation companies to form Instalco – a new player on the Swedish installation market. The current owners (in total 17 individuals) have become shareholders in the group holding company and will remain in their operational roles.
Instalco will be a leading multidisciplinary group with strong presence in the Stockholm region and industrial segment, with expected 2013 sales of SEK 550 million. Member companies PoB (electrical installations), Klimatrör, Rörgruppen, VVS-Metoder (heating & plumbing) and ORAB (industrial piping) represent technically leading niche companies with market leading positions.
The transaction was initiated by FSN Capital together with Per Sjöstrand, a highly experienced executive in the industry, as the former CEO of installation groups NEA and Midroc Electro. Per Sjöstrand will step in as CEO effective 1 April 2014. In addition, Mats Wäppling (former CEO of Sweco) and Olof Ehrlén (former CEO of NCC) will be appointed as board members of Instalco Holding.
“Based on my 20 years of experience as a manager in the installation industry, I see exciting opportunities in the market for a player that combines the strength of a large company with high local flexibility and customer focus. By establishing Instalco, we are creating a uniquely positioned company in terms of multi-technical competencies, quality of service and position to drive consolidation. We look forward to working with the skilled employees of Instalco to develop the group” commented Per Sjöstrand.
Peter Möller, partner at FSN Capital, sees a clear rationale for investment: “The installation market is highly attractive, related to the positive outlook for construction demand in Sweden, trend towards market consolidation and highly cash generative business profile. The Instalco set of companies represent our top picks from the industry based on track record and customer advocacy. We see an exciting opportunity in partnering with management to create a leading multidisciplinary group – quality and service wise – catering to customers within mid-size projects”.
Bain & Company (commercial), Hamilton (legal) and Grant Thornton (financial) served as due diligence advisers to FSN Capital and management in the transaction.