Target Information

MVI Equity AB ("MVI") signed a share purchase agreement on April 1, 2021, acquiring all shares of Noxon AB (noxon.se), with simultaneous access granted to the buyers. Prior to this acquisition, MVI had acquired Noxon in February 2011 and transformed the company over a decade from a manufacturing-oriented business into a service-focused enterprise, which has resulted in higher and more stable revenues and increased profit margins. Specific initiatives successfully implemented include the professionalization of after-market offerings and the expansion of the applications for Noxon decanter centrifuges.

Noxon specializes in the development, sale, manufacture, and servicing of decanter centrifuges that are used for separating particles from liquids. The company's clientele includes municipal wastewater treatment plants, large-scale biogas facilities, and local laundries. Noxon's mission is to enhance the efficiency of dewatering processes, ensuring greater cost savings and reduced environmental impact.

Industry Overview

The market for manufacturing and servicing decanter centrifuges in Sweden has been experiencing a gradual shift toward service-oriented business models over recent years. This change is propelled by growing awareness of environmental sustainability and operational efficiency, prompting industries to invest in advanced separation technologies. The increasing need for efficient wastewater treatment and resource recovery has significantly boosted the demand for decanter centrifuges, highlighting their role in sustainable processing.

Furthermore, the biogas sector in Sweden has been flourishing, driven by government incentives aimed at promoting renewable energy sources. As a result, the demand for equipment that facilitates waste treatment and the conversion of organic waste into biogas has surged. Noxon, with its expertise in high-efficiency decanter centrifuges, is well-positioned to take advantage of these industry trends and meet the growing needs of both municipal and industrial customers.

In addition, local laundries and small-scale businesses are increasingly recognizing the value of investing in efficient water treatment solutions. This shift presents an attractive market for Noxon as it can cater to diverse clients with specialized needs across various sectors. The blend of increasing regulatory pressures for environmental compliance and the push for cost reduction further solidifies the relevance of Noxon's product offerings in Sweden's water treatment landscape.

Rationale Behind the Deal

The acquisition by MVI of Noxon is underscored by the latter's successful transition towards a service-focused approach, which aligns with the current market demand for sustainable and efficient solutions. MVI's decision to sell its stake to Beijer Tech reflects a strategic vision where it believes that Beijer Tech is the right partner for Noxon's future growth. This acquisition is expected to provide Noxon with the resources and expertise necessary to further scale its operations and deepen its market penetration.

Investor Information

MVI Equity AB, a significant player in the private equity space, focuses on investing in small to medium-sized enterprises with potential for growth and development. MVI is known for its hands-on approach in driving operational improvements and strategic transformations that lead to enhanced business performance. Through its decade-long ownership of Noxon, MVI has successfully navigated the company through transformative changes, establishing a robust foundation for future success.

View of Dealert

According to industry analysis, the investment in Noxon could be considered a sound decision. As market dynamics increasingly favor service-oriented business models and sustainability, Noxon's positioned capabilities make it attractive in the medium to long term. The transformation initiated during MVI's ownership is promising, as it not only stabilized revenues but also created opportunities for further profitability growth.

The growing demand in sectors that require efficient liquid separation strengthens the rationale for future investments in companies like Noxon. The backing of a strong partner such as Beijer Tech is anticipated to enhance Noxon's operational capabilities, drive innovation, and expand its market reach, thus augmenting its value.

In conclusion, this deal appears favorable, given the strategic alignment of Noxon's objectives with industry trends and the continued support from experienced investors. The deal's success, however, hinges on the effective integration of Noxon into the Beijer Tech framework and the ability to capitalize on new market opportunities as they arise.

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