2. Jul 2007
Polaris, the Danish private equity fund, has acquired Emotron AB, a Swedish company headquartered in Helsingborg, and aims to at least double the company’s revenue within five years. Experienced executives from Swedish industry joining the Emotron board of directors. In just over two years, Polaris has acquired four Swedish businesses with aggregate revenue of SEK 1.3bn. Emotron develops and produces advanced equipment enabling the company’s customers to enhance cost efficiency and reliability in processes and machinery run by electric motors. The ever growing focus on enhancing energy efficiency in all parts of society provides a strong platform for Emotron’s growth to date and in the future.
Emotron was founded in 1992 through a merger of three businesses, and the company has evolved strongly under its current management. Revenue has risen by an average of 15% annually over the last four years, reaching SEK 303m in 2006. EBITA was just over SEK 20m in 2006. EBITA is expected to improve in the current financial year on revenue that is expected to grow by 20% to about SEK 360m.
Polaris aims to at least double Emotron’s revenue over the next five years. The company is expected to generate strong growth in Europe, especially in the home markets of Germany, the Netherlands and Sweden. The expansion efforts will be effected in close collaboration with Emotron’s established global business partner and distribution network.
“Emotron’s products and solutions play an active role in helping customers achieve substantial energy savings and efficiency improvements. They also reduce the wear on machinery and extend machine life. Creating cost savings, contributing to greater efficiency and helping to improve the environment makes for a strong business model,” says Peter Ankerst, partner of Polaris Private Equity.
Management becoming co-owners Emotron has 150 employees, most of whom work at one of the two production sites in Helsingborg and at Bladel in the Netherlands. Emotron has subsidiaries in Germany, the Netherlands, the USA and Sweden as well as an office in China.
Emotron’s CEO, Jan-Eric Bergström and the rest of the management team will stay on with the company, taking a co-ownership interest. Jan-Eric Bergström and the rest of the management team have implemented the current strategy, in which the greater focus on sales and on directing product development towards selected applications has produced substantial improvements.
Intelligent equipment for applications run by electric motors
Emotron’s product portfolio consists of variable speed drivers, soft-starters and shaft power monitors that are used to run, protect and monitor various machinery and processes. The most important applications are for pumps and pump stations, cranes, elevators, compressors and ventilation systems.
Retaining the focused strategy Emotron will continue to focus on selected applications and plans to expand its array of cost-efficient solutions through targeted product development.
“The key to our improvement lies in our strong focus on product development and marketing of applications offering a large growth potential and that are profitable both for our customers and for us. Our employees and business partners all over the world are making competent and committed efforts to create a competitive edge for our customers,” said Emotron’s CEO, Jan-Eric Bergström.
Strengthening the board of directors New appointments have been made to Emotron’s board of directors in connection with the change of ownership. Hans Johansson, formerly CEO of Semcon AB, a Swedish-based consultancy, will become chairman. Åke Fredriksson, formerly CEO of the Perstorp Group, and Peter Ankerst, partner of Polaris, will also join the board. Both of the new independent board members bring with them industrial know-how and experience from international businesses generating strong growth.
“Emotron’s management has successfully developed the business through a dedicated focus on selected applications and market segments. We are now ready to take Emotron to the next level by accelerating organic growth and making additional acquisitions, and I look forward to being a part of that process,” said Hans Johansson.
The acquisition will take effect as from 6 July 2007. The sellers are Siem Capital and a number of other investors. The acquisition involves all shares in Emotron’s parent company. The parties have agreed not to reveal the acquisition price.
Polaris’ Swedish operations Emotron is the fourth acquisition Polaris has made in Sweden in just over two years. Polaris currently has a majority shareholding in four Swedish businesses that have a total of 550 employees and aggregate revenue (in 2006) of SEK 1.3bn.
For further information, please contact: Peter Ankerst, partner of Polaris, tel +46 701 30 28 30 Jan-Eric Bergström, CEO, Emotron, tel +46 42 16 9984 Hans Johansson, newly-appointed chairman: tel +46 705 91 4334
www.polarisequity.dk and
www.emotron.se About Polaris Private Equity Polaris Private Equity is a private equity fund investing in mature small and medium-sized businesses in Denmark and Sweden, companies that have sound development potential and revenue of EUR 20-25m or more. To date, Polaris has invested in 15 businesses, seven of which have been resold at satisfactory returns. Polaris has also made a number of additional investments in its portfolio companies.
The first Polaris fund of EUR 210m is fully invested, while the second fund, Polaris Private Equity II, has capital commitments of EUR 270m and is currently being invested. Fund II has invested in seven businesses to date, which in addition to Emotron AB are Skamol A/S, Hamlet Protein A/S, AddPro AB, Jetpak AB, Color Print A/S and Fiskarhedenvillan AB.
Polaris’ investor base includes A. P. Møller-Maersk, Danske Bank, ATP Private Equity, PFA Pension, Lærernes Pension, Topdanmark, PensionDanmark, Kirkbi, Sparekassen Sjælland, the Bagger-Sørensen Group, Merchant Mid Cap Nordic and Icelandic company Glitnir.
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