GROWING BUSINESS THROUGH ACQUISITIONS
Despite the prevailing pandemic, Addtech has maintained a high pace of acquisitions over the financial year. The market situation for acquisitions is favourable and we take a positive view of acquisition opportunities in the Nordic region, but also in other selected European markets to continue our international expansion.
For Addtech, growing through acquisitions is a key strategy. Since the start in 2001, we have completed slightly more than 140 acquisitions of entrepreneurial technology companies and we have established a successful process for the integration and development of each company. By acquiring niche market-leading companies, Addtech is always able to create new growth opportunities, regardless of the broader economic situation. Many entrepreneurs view Addtech as an attractive buyer as it allows them to retain decentralised responsibilities while receiving support in their development aided by an active, long-term owner.
Each acquisition is unique. The process varies – sometimes it progress rapidly, in other cases it can take several years from the first contact to the signed agreement. It simply has to take the time it takes.
In 2020/2021, Addtech acquired 14 companies with combined annual sales of approximately SEK 1,140 million. One of these companies was Impact Air in the UK, which offers waste management systems for industrial and recycling facilities around the world. The company’s customised solutions contribute to more sustainable waste management and to a circular economy. With slightly more than 30 employees, Impact will supplement existing Industrial Process operations in the Industrial Solutions business unit.
“Together with Impact, we are continuing to identify new niches in which we can expand our offering of sustainable solutions for customers,” says Niklas Stenberg, President and CEO of Addtech. It is also an example of an acquisition demonstrating our ambition to expand internationally.
“With Addtech as a long-term owner, we gain an excellent and exciting opportunity to further develop our operations and solutions,” says Nick Ball, Managing Director of Impact. We look forward to taking Impact to the next level supported by the Group and all of the amazing companies in the Addtech family. I see Addtech as a committed owner with clear objectives and tools for both development and long-term profitability. There is also a genuine desire to continuously raise the bar with regard to sustainability, which is completely in line with Impact’s solutions for sustainable waste management and a future circular economy.
Addtech’s international expansion is being achieved by following our customers out into the world, by establishing own operations abroad or by acquiring existing companies. Karin Grawe, who lives in Germany and works with sales at one of our companies, Emcomp International, also spends a large part of her time identifying potential acquisition candidates in the DACH region.
“Addtech’s scalable business model works very well in Germany and many entrepreneurs here are curious about our decentralised business culture,” says Karin Grawe. Acquiring companies with market-leading niche positions and developing them long term is an important part of Addtech’s strategy. From the perspective of sustainable development, the fact that the companies operate in emerging markets is becoming increasingly important when we analyse and evaluate potential acquisitions.
When a new company is acquired and joins the Addtech family, it is placed with similar or complementary companies in a joint business unit within a business area. This quickly immerses companies in our business culture, in which they are able to grow alongside like-minded companies. The match in culture between the buyer and the seller is often a decisive success factor.
“We take a genuine interest in developing businesses together with their founders and seek to do so long term,” says Niklas Stenberg. “Accordingly, our culture must match that of the acquired company from the outset. That is when we can enter into a partnership benefiting both parties and leading to mutual development and growth.”