Information on the Target

MVI, a prominent Nordic private equity firm, has successfully divested its portfolio company, Great Security Holding AB, and its subsidiaries, marking a significant milestone in its first fund, MVI Fund I. This transaction, signed in July 2023, underscores MVI's dedication to nurturing the next generation of Nordic companies, particularly within the security industry, which was identified as a promising growth sector at the onset of MVI's investment journey.

Great Security has emerged as a market-leading independent provider of security services in Sweden, demonstrating exceptional value creation and notable revenue growth during MVI's involvement. Over the past six years, the company has effectively consolidated the fragmented security market, growing its revenues from SEK 140 million to almost SEK 900 million, primarily through organic expansion and the strategic acquisition of fifteen companies.

Industry Overview in Sweden

The security industry in Sweden has been experiencing significant transformations, driven by increased demand for safety and technological advancements. With a rising number of businesses and sophisticated urban environments, the need for comprehensive security solutions has surged. This growing need is reflected in the competitive landscape, where companies strive to offer integrated and innovative security services.

The consolidation of the security market has enabled companies like Great Security to enhance their service offerings, leading to improved efficiencies and expanded market reach. The move towards digitalization, coupled with an emphasis on providing 'Security as a Service' solutions, is reshaping industry standards and customer expectations.

Furthermore, the market is characterized by a blend of traditional security operators and new entrants leveraging technology, fostering an ecosystem that encourages innovation. The presence of skilled personnel and certified experts is crucial in maintaining service quality and winning high-profile contracts.

As one of the leading integrated security firms in Sweden, Great Security's recent success in securing national contracts with blue-chip clients illustrates the industry's potential for growth and stability. This upward trend positions the security sector as an attractive investment opportunity in the Nordic country.

The Rationale Behind the Deal

The divestment of Great Security is seen as a strategic move by MVI to realize the value created during its stewardship. Under MVI's ownership, Great Security matured from a local service provider into a nationwide leader in the security industry. The partnership included various professionalization efforts, investments in technological advancements, and the development of a capable management team who together laid down the groundwork for continuous growth.

EMK Capital, the new majority owner, brings fresh insights and resources, allowing Great Security to further solidify its position in the Nordic security market. The consolidation with other EMK-backed firms, such as Garda Sikring, Kibo Sikring, and Heda Security, enhances their collective capabilities and market presence in technical security solutions.

Information about the Investor

MVI is a distinguished private equity investor targeting small and medium-sized enterprises across the Nordic region. With a focus on acting as a catalyst for growth, MVI seeks to build robust, long-term sustainable companies by leveraging its extensive network of entrepreneurs and business experts.

The firm's strong track record in identifying proprietary investment themes and delivering impressive returns highlights its expertise in navigating the complexities of the private equity landscape. MVI's commitment to value creation was pivotal in Great Security's successful journey, underscoring the firm's strategic approach to investment.

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Considering the successful growth trajectory of Great Security during MVI's ownership, this divestment can be seen as a strategic and beneficial investment. MVI's approach to supporting the consolidation of the security market and fostering professionalization and technological advancements has evidently paid off, resulting in impressive revenue growth and market share.

The acquisition by EMK Capital signals a continued path of development for Great Security, positioning it well for future growth within the competitive Nordic security market. The collaboration with other companies under EMK's portfolio emphasizes a strategic positioning that can bolster the service offerings and resilience of Great Security.

Moreover, with the ongoing changes in the security landscape, including the rise of digital solutions and integrated services, investing in a well-established player such as Great Security appears to be a sound decision. The solid foundation laid during MVI's tenure provides a promising outlook, suggesting that further value creation and expansion are indeed achievable.

In conclusion, the divestment marks a pivotal achievement for MVI, not only exemplifying their effectiveness in advancing the business but also indicating future opportunities for Great Security under new ownership. The industry's favorable conditions further support the notion that this investment was strategically advantageous.

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