Acquisitions

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Acquisitions

The goal of the ‘Acquisition strategy’ is to establish growth, diversify the Group through platform transactions to new industrial areas and geographies and to complement the existing Business Areas with add-on acquisitions.

We have committed the following acquisitions since year 2000:

Year Company Revenue Press release (In Finnish)
2022 Led-Systems Oy (FIN) 0,3 EURm (2021) Press release
2022 Signal Solutions Nordic Oy (FIN) 13,0 EURm (2021) Press release
2022 GT Motor (FIN) 0,2 EURm (2021) Press release
2022 Vesterbacka Transport Oy (FIN) 0,5 EURm (03/2021) Press release
2022 Infradex Oy (FIN) 2,0 EURm (01/2022) Press release
2022 Pronius Oy (FIN) 5,5 EURm (08/2021) Press release
2021 Floby Nya Bilverkstad AB (SWE) 91 SEKm (2020) Press release
2021 Milcon Oy (FIN) 4,2 EURm (2020) Press release
2021 Etelä-Suomen Kuriiripalvelu Oy & Teitteam Oy (FIN) Combined: 3,9 EURm (2020) Press release
2020 Sany Nordic AB & PM Nordic AB (SWE) Combined: 133 SEKm (2020) Press release
2020 Muottikolmio Oy (FIN) n. 5 EURm (2019) Press release
2020 Machinery Group Oy (FIN) 52,2 EURm (2019) Press release
2019 Tornokone Oy (Machinery Group Oy ostajana) (FIN) 15,9 EURm (2018) Press release
2017 Noretron Komponentit Oy (FIN) 5,1 EURm (2016) Press release

Main goals of the Acquisition strategy

Growth

Through our Acquisition strategy, we aim at creating the majority share of the targeted sales and earnings growth for the group during the 2021-2023 strategy period.

Diversification

The Acquisition strategy furthermore aims to diversify the Group through platform transactions to new industries and geographies and hence creating a favorable risk profile for the group.

Strengthen existing operations

Strengthening of existing businesses with complementary add-on acquisitions

Type of acquisitions we do

The way we work with acquisitions

Our experienced centralized M&A organization develops our M&A-activities and facilitates the creation of deal flow from our organization and from the network of advisors working with transactions.

In deal flow generation, we encourage and educate our people to ‘think in M&A’. This internal deal flow generation method acts as a key source for identifying complementary businesses to our existing operations. In addition, we continuously maintain relationships with the financial community working with transactions in Northern Europe. This in turn acts as a source of identifying possibilities for the group to diversify to new industries and geographies.

We have a standardized acquisition process from identification of opportunities, to execution of transaction and to post-acquisition integration. We pay high attention to aligning interests of key management of the acquired companies with the group.

We make sure that the company to be acquired is culturally fit for Boreo Group and is committed to Boreo way / values.

Common criteria for all acquisitions include:

  • B2B businesses

  • Decent valuation

  • Asset light

  • Healthy operative margins

  • Predictable revenues

  • High cash conversion

Specific characteristics for platform acquisitions include:

  • No integration to existing Business Areas

  • Sufficient scale either at acquisition or through a build-up after acquisition

  • Possibilities for value creation via Acquisitions and Operational Excellence

Specific characteristics for add-on acquisitions include:

  • Full or non-existent integration to existing businesses

  • Geographical or product offering expansion

  • Vertical and horizontal expansion in the value-chain

  • Small operational add-ons to larger stand-alone acquisitions

Our approach towards synergies

Our philosophy in acquiring companies is not built on capturing synergies with our existing operations and hence we limit the risk profile attached to growth via acquisitions. However, in daily operations we continuously focus on identifying synergies between our businesses to create growth of sales and earnings. Identifying and capturing synergies is an integral part of our Operational Excellence strategy.

Our geographic focus

We aim to acquire companies in Northern Europe and selected other geographies.

Contact information

Jesse Petäjä
Head of M&A, Boreo Oyj
jesse.petaja@boreo.com, +358 40 706 9450