Our acquisition strategy

 

For many years, our strategy has been to identify internationally emerging niches in which our divisions can distinguish themselves by means of sought-after brands and products. Our ambition is for every division to be, or to have the potential to establish themselves in the long-term as the number one or number two player in their respective niches, with good long-term growth and profitability as a result.

We work systematically to identify attractive and well-managed companies with strong brands that may be relevant for acquisition. These are divided into two categories:

  • Companies that complement our existing operations in terms of product range, production, logistics and geographical coverage. Typical complementary acquisitions for us are operations with annual sales of SEK 50–300 M.
  • Companies in new fields of operation that can form a separate division. In this respect, we seek companies with annual sales of approximately SEK 500 M and upwards.  

The companies must have strong brands, preferably proprietary products and their own distribution operations. They should not be dependent on a small number of major customers or suppliers.

Read more under Strategy.

Must fit in to the culture

Over the past decade, the VBG Group has acquired five companies and in the past five years the acquisition frequency has increased, with acquisitions in 2012, 2014, 2015 and 2016. We have also refrained from the opportunity to make an acquisition on a number of occasions. Our aim is not to grow for the sake of growth – it is important that we acquire the right company. A critical part of our analysis of acquisition candidates is assessing whether the company fits in with the VBG Group’s corporate culture. We are a committed and long-term industrial owner – our companies should be prosperous and develop in a healthy manner.

Testimonials from former owners

Testimonials from the former owners of four companies acquired by VBG Group are presented below.


Daniel Repfennig, Ratos AB

"We acquired Mobile Climate Control in 2007 and for almost ten years, we have been working alongside the company’s management to strengthen Mobile Climate Control’s market position by conducting add-on acquisitions, investing in product development and increasing productivity. When the company was divested, it was twice the size of when we acquired it and profitability was high. In addition to commercial and legal considerations, a secure transaction was important for us in the divestment process. VBG Group maintained a high tempo and was easy to deal with throughout the process. We consider VBG Group a strategically appropriate owner of Mobile Climate Control. The have deep industry knowledge and we believe that Mobile Climate Control and VBG Group are a good match, and have the potential to create mutual benefits in many areas."

Daniel Repfennig, Senior Investment Manager at Ratos AB


Celso Cassiano, Henfel Ltda

“For quite some time, I had been looking for a partner capable of taking the company to the next level. It was important for me to find an owner that intended to concentrate on the long-term development of Henfel, and that would work to ensure that the company continues to be a strong employer in Jaboticabal. With its Ringfeder Power Transmission division I felt that VBG Group had both the commitment and the expertise in other market segments that I was looking for, so what began as a discussion concerning a partnership resulted in a sale instead.”

Celso Cassiano, former owner and now CEO of Henfel Industria Metalurgia Ltda


Ludger Tüschen, Tschan GmbH

“I owned and financed Tschan GmbH for many years and the last few years were tough. I was therefore relieved to reach a solution for the company where as few employees as possible had to lose their jobs. With Ringfeder Power Transmission as the new owner, and the stability that comes with a long-term owner such as VBG Group, I felt that Tschan GmbH would have favourable development potential.”

Ludger Tüschen, former owner of Tschan GmbH


 Patrick Freyer, Onspot of North America

“Since we were a licensee of the VBG Group, our two companies have had a long history together. This long-term relationship convinced us that we were leaving our company in very capable hands, both financially and technically. Moreover, we knew that our employees would have a stable future. Lastly, by combining the efforts of both companies, the Onspot product would take on a more global emphasis.”

Patrick Freyer, former minority owner and CEO of Onspot of North America