Information on the Target

Nomor Holding AB ("Nomor"), which is primarily owned by Norvestor VI, L.P., has entered into an agreement to acquire PELIAS Norsk Skadedyrkontroll AS ("PELIAS"), a distinguished provider of pest control services in Norway. This strategic acquisition will substantially enhance Nomor's market share within Norway, providing comprehensive nationwide coverage and establishing a foundation for future expansion in the fragmented European pest control sector. The newly formed entity anticipates a revenue target of approximately SEK 500 million for 2019, supported by a workforce of around 500 employees and a customer base of 30,000.

PELIAS is recognized as one of the leading players in the pest control and food safety domain in Norway. Headquartered in Elverum, the company boasts a robust network of local technicians that deliver top-tier services to clients throughout the country. With an employee count of approximately 125, PELIAS has projected revenues of about NOK 150 million.

Industry Overview in Norway

The pest control industry in Norway is characterized by its highly competitive landscape, marked by a trend toward consolidation as companies seek to enhance their market presence and operational efficiency. The demand for pest control services is on the rise, driven by increasing urbanization, heightened public awareness regarding hygiene, and growing regulatory requirements for food safety. These factors contribute to a dynamic market environment ripe for growth.

Furthermore, the industry is evolving with advancements in technology and service delivery methods, such as integrated pest management systems that emphasize sustainability and customer satisfaction. As more businesses prioritize eco-friendly solutions, pest control providers that adapt to these changes are likely to secure a competitive advantage.

In addition, the government's efforts to regulate pest control practices further elevate the need for professional services in this sector. This regulatory landscape ensures that companies operating in Norway must adhere strictly to safety and environmental standards, thereby increasing the demand for qualified, reputable pest control service providers.

Overall, with a progressive outlook on pest control practices and an emphasis on efficient service delivery, the Norwegian pest control industry presents a promising opportunity for growth and investment.

The Rationale Behind the Deal

This acquisition aligns with Nomor's strategy to strengthen its position in the European pest control market, which remains fragmented with ample room for consolidation. By acquiring PELIAS, Nomor not only increases its market share in Norway but also leverages PELIAS’ established reputation and operational capabilities. This synergy is expected to accelerate overall growth and improve service offerings, catering effectively to the needs of an expanding customer base.

Moreover, the acquisition presents an opportunity for operational efficiencies and resource sharing, allowing Nomor to streamline its operations and enhance profitability. The combined resources are poised to create a stronger competitive entity capable of delivering superior services across Norway.

Information About the Investor

Nomor Holding AB is a prominent player in the pest control market, known for its commitment to delivering high-quality services. As a majority-owned entity of Norvestor VI, L.P., which specializes in investing in companies with strong growth potential, Nomor benefits from robust financial backing and strategic guidance. This relationship enables Nomor to pursue expansion opportunities such as the acquisition of PELIAS, aiming to create substantial value for its stakeholders.

Norvestor, the investment firm behind Nomor, has a proven track record in identifying and nurturing companies that can thrive in competitive environments. Their focus on operational excellence and sustainable business practices positions Nomor well in the evolving pest control market, enhancing its capability to execute strategic initiatives effectively.

View of Dealert

In evaluating the acquisition of PELIAS by Nomor, it appears to be a sound investment decision with significant potential for growth. The acquisition allows Nomor to consolidate its position within a rapidly growing market while gaining full nationwide coverage in Norway. The combined entity is well-positioned to capitalize on existing market opportunities, further enhancing its revenue potential.

Additionally, the acquisition mitigates risks associated with market entry by leveraging PELIAS’ established presence and expertise in the local market. By harnessing PELIAS’ network and resources, Nomor can accelerate its growth trajectory while improving operational efficiencies.

However, it is crucial for Nomor to focus on integrating PELIAS effectively to realize the expected synergies. Effective integration will enable the newly formed entity to enhance service delivery, retain existing customers, and attract new clientele, ensuring sustained growth in a competitive landscape.

Ultimately, if Nomor successfully navigates the integration process and aligns its strategic goals with those of PELIAS, this acquisition has the potential to emerge as a highly fruitful investment, solidifying Nomor's leadership position in the pest control market.

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