Target Information

Juuri Partners has made a significant investment in Co-Engineering Oy, a planning office based in Vaasa, Finland. The company, which specializes in consulting services for the green energy and industrial sectors, has strong prospects for growth, driven by its expertise in energy transition and related fields. Co-Engineering provides services for various planning projects, including substations, wind power production, and production control systems.

A majority of Co-Engineering's operations occur on clients' premises, integrating within their design teams. The company counts prominent industry players such as ABB, Hitachi Energy, and Wärtsilä among its key clients. Co-Engineering has offices located in Vaasa, Seinäjoki, Tampere, Helsinki, and Östersund, Sweden. Founded by entrepreneur Sami Kivioja, the company has experienced remarkable growth, expanding its revenue by over 20% annually and doubling its turnover in five years. In 2021, Co-Engineering's revenue reached €8.6 million, with a goal to triple this figure by 2025 through both organic growth and acquisitions.

Industry Overview in Finland

The Finnish green energy sector is poised for substantial growth, with wind power production projected to quadruple during the 2020s. This transition towards green energy is a crucial driver for Co-Engineering's future, as the company offers extensive services in wind farm design, installation, commissioning, maintenance, and repair.

Investments in the electricity grid are also anticipated to be significant, particularly with regard to substation design, where Co-Engineering possesses specialized expertise. As energy production diversifies and networks become smarter, substantial investment in the transmission grid is expected, with estimates exceeding €2 billion over the next decade.

Beyond green transition and energy, the ongoing digitalization and automation of industry necessitate advanced expertise. Design firms like Co-Engineering are essential in addressing the existing talent shortages in these areas. They attract skilled professionals with robust career development paths and diverse job roles, creating an appealing working environment.

Co-Engineering aims to address the most complex challenges faced by its clients, placing a strong emphasis on career progression. Employees are encouraged to pursue career development plans as soon as they express interest, rather than having to wait for years. The company plans to recruit a significant number of new talents as part of its growth strategy, according to CEO Sami Kivioja.

Rationale Behind the Deal

The investment by Juuri Partners comes at a pivotal moment for Co-Engineering, presenting an opportunity for further expansion amid a rapidly evolving market focused on renewable energy technologies. By leveraging Juuri Partners’ financial and strategic support, Co-Engineering aims to accelerate its growth trajectory, not only through increasing internal capabilities but also by acquiring complementary businesses that align with its vision.

Investor Information

Juuri Partners is a private equity firm specializing in growth investments. The firm focuses on supporting innovative companies with high growth potential across various sectors. Their strategic approach includes not only financial investment but also active involvement in the development and scaling of portfolio companies. The partnership with Co-Engineering exemplifies their commitment to fostering success through collaboration and expertise.

View of Dealert

This investment represents a strategic move by Juuri Partners to capitalize on the burgeoning demand for green energy solutions in Finland. The growing emphasis on renewable energy projects, particularly in wind energy, positions Co-Engineering as a valuable player in the market. The company’s proven track record of substantial revenue growth and its ambitious plans for further expansion make it an attractive investment opportunity.

Furthermore, Co-Engineering’s commitment to addressing industry challenges and fostering talent development strengthens its market position. The firm’s unique combination of expertise and its proactive approach to recruitment can lead to improved innovation and service delivery in a competitive landscape.

While the investment comes with inherent risks, particularly regarding competition and execution of growth strategies, the overall outlook remains positive. With the robust support from Juuri Partners and a clear roadmap for increased market share, Co-Engineering is situated to potentially achieve its ambitious financial goals in the coming years.

View Original Article