Information on the Target

Serwent Holding AS (“Serwent” or “the Company”) is a leading provider of underground infrastructure maintenance services operating in Scandinavia. The Company offers essential services in three primary segments: pipe services, emptying services, and special services. Serwent maintains a significant presence with 23 branches across Norway, Sweden, and Denmark, serving approximately 50% of the population. The Company employs around 500 full-time staff and is headquartered in Oslo, Norway.

In recent years, specifically from 2015 to 2023, Serwent achieved substantial growth by consolidating and integrating ten regional underground infrastructure maintenance companies into a cohesive standalone group. In 2023, the Company generated annual revenues of approximately NOK 1.0 billion after being carved out from the Recover Group, which is predominantly owned by EQT.

Industry Overview in Scandinavia

The underground infrastructure maintenance sector in Scandinavia is experiencing notable growth, driven by various factors including urbanization, climate change, and the deterioration of existing infrastructure. As urban areas expand, the demand for reliable maintenance and management of underground services continues to rise, creating opportunities for companies like Serwent that specialize in these critical services.

Furthermore, the region's commitment to sustainability and infrastructure resilience necessitates the regular maintenance and upgrading of existing systems. This trend is further accentuated by governmental policies promoting the development of robust infrastructure networks to support economic growth while addressing environmental challenges.

In addition, with the ongoing transition to more sustainable practices, companies that offer innovative solutions for underground maintenance are positioned for success. The increasing investment in infrastructure by both public and private sectors is set to further bolster the demand for specialized services in this industry.

Serwent's experience and established reputation within these segments position it well to leverage these market dynamics, catering to both public and private sector clients while navigating the evolving landscape of infrastructure needs in Scandinavia.

The Rationale Behind the Deal

The acquisition of Serwent by Norvestor IX SCSp is motivated by the strong fundamentals of the underground infrastructure maintenance market in Scandinavia. Norvestor has been closely monitoring the UIM sector and sees significant growth potential, driven by the factors such as ageing infrastructure and increased urbanization.

Norvestor's confidence in Serwent derives from its strong local market positions, proven record of profitable growth, and high operational performance. The Company’s driven team, coupled with high customer satisfaction, presents an opportunity for Norvestor to enhance Serwent's leadership position in the Scandinavian market while exploring consolidation prospects across Northern Europe.

Information About the Investor

Norvestor is a prominent private equity firm that specializes in mid-market buyouts across the Nordic region. With a team that has collaborated since 1991, Norvestor is recognized as one of the most experienced private equity teams in the Nordics. The firm has successfully executed 92 investments and over 475 add-on acquisitions, along with 61 exits, including 16 IPOs.

Norvestor aims to invest in growth-oriented companies within the Nordic mid-market that demonstrate potential for achieving a competitive edge on a Nordic or international scale. This is typically pursued through organic growth strategies, acquisition across fragmented sectors, or geographical expansion.

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The acquisition of Serwent by Norvestor IX SCSp appears to be a strategic and potentially lucrative investment based on current market conditions. The strong fundamentals of the underground infrastructure maintenance industry in Scandinavia, combined with Serwent's established market presence and operational success, suggest that the Company is well-positioned to capitalize on ongoing developments within the sector.

Considering the increasing demand for maintenance services driven by urban growth and ageing infrastructure, Norvestor's investment coincides with an advantageous market entry point. The backing by Norvestor is expected to empower Serwent to enhance its operations, pursue further growth initiatives, and potentially capitalize on consolidation opportunities in Northern Europe.

Moreover, Norvestor's extensive experience and proven track record in the private equity sector will provide Serwent with invaluable strategic guidance and resources, contributing to the Company’s planned growth trajectory. This partnership is likely to foster an environment of innovation and operational excellence within Serwent.

In summary, the deal holds promise as a solid investment for Norvestor, with potential long-term gains backed by industry growth prospects and Serwent's established capabilities in a crucial service area.

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