The Group expands through acquisition

Acquisitions are central to business development and growth creation. Acquired businesses add new products, extend the customer base and bring new expertise to the Group. The aim is for acquisitions to add sales of SEK 150 - 200 million each year.

Acquisition strategy

OEM primarily strives for three kinds of acquisitions. The first two described here are the most common:

  • Operations with products that complement OEM's portfolio in a market where it has an established presence.
  • Operations that give access to a new geographic market for one of OEM's existing product areas.
  • Operations of product-owning companies in one of the markets where OEM has an established position.

Identifying companies for acquisition

OEM  is constantly on the look-out for potential takeover targets. All of OEM's operations have a responsibility to identify potential acquisition targets, which is coordinated by Group management. A network of brokers, audit firms and banks also helps ensure a constant inflow of interesting acquisition targets. OEM strives to engage in dialogue at an early stage with the owners of potential targets. It is important to build a trusting relationship and present the platforms that OEM can offer for developing and expanding the businesses after they have been acquired. The ideal acquisition targets have a number of common features:

  • Trading company or product-owning company with annual sales of sek 20 - 200 million.
  • Represents manufacturers or has its own brands.
  • May have processing or simpler production facilities.
  • The selling entity sees it as advantageous to have an owner that is strongly committed to and interested in taking the business to the next stage of development.

Focus on the business

Central to OEM's culture is a strong commitment to the operations and business. When analysing acquisition targets, there is therefore a strong focus on the business and areas such as the organisation, company culture, portfolio of offerings and future potential. In addition, an appraisal is performed to determine the effects of the acquisition on OEM's other operations and what synergies could be achieved. OEM makes acquisitions either by purchasing an entire company (with or without the previous owner remaining with the company) or by purchasing a company's assets.

Moving the acquired company to the next level of development

Based on its philosophy to be an active and long-term owner, OEM creates a development plan for each business it acquires. OEM can, for example, make its existing operations work to the advantage of the acquired company by opening up new markets and customer groups. The acquired company can continue to operate as a separate company or is integrated into one of the existing operations. The basis for these considerations is what is best for the current business and where are the greatest opportunities for growth.