Information on the Target

Nomor AB (publ) is the second largest pest control company in Sweden, established in 1995. With a focus on services such as pest control, food safety, and home-related services, Nomor has established a strong market position, operating from 19 offices across the nation. Under the leadership of CEO Svein Olav Stølen and Sales Director Robert Stierngranat, who joined the management team in 2009, Nomor has seen remarkable growth, doubling its revenue and transforming its business from losses to profitability. In 2013, the company reported revenues of SEK 104 million, reflecting its commitment to responding to customer needs and maintaining high-quality service across all operations.

Industry Overview in Sweden

The pest control industry in Sweden is a rapidly evolving sector, driven by an increase in awareness regarding hygiene standards and pest control services. The growing demand for pest management in various industries, including food safety for restaurants and hotels, has fueled the need for reliable pest control solutions. The skilled workforce and innovative technologies utilized in this field have further strengthened the competitive landscape.

Additionally, the rise of stringent regulations surrounding food hygiene has created opportunities for pest control companies like Nomor to expand their offerings and ensure compliance with these standards. This transformation in the sector emphasizes the importance of integrating pest control solutions into comprehensive food safety practices, catering specifically to clients in sectors with high hygiene requirements.

Moreover, the trend of urbanization in Sweden has resulted in an increase in pests, leading to a higher demand for effective pest control services. Companies in this industry must continually adapt and innovate to provide state-of-the-art solutions, with an emphasis on sustainability and environmentally friendly practices, which are becoming increasingly essential to consumers.

The Rationale Behind the Deal

Norvestor VI, L.P., managed by Norvestor Equity AS, has identified Nomor as a prime investment opportunity due to its impressive growth trajectory and strong management team. The partnership aims to leverage Norvestor's extensive experience and resources to further develop the company. With Norvestor acquiring a 70% stake, the collaboration will allow for the execution of growth strategies that enhance Nomor's capabilities and market reach.

In addition to financial backing, Norvestor's involvement brings a wealth of operational expertise, which can significantly contribute to Nomor's future expansion and product diversification. This synergy between management and investor is anticipated to catalyze Nomor's ability to capitalize on various growth prospects within the Nordic pest control market.

Information About the Investor

Norvestor Equity AS is a prominent private equity firm specializing in lower mid-market buyouts within the Nordic region. Established in 1991, Norvestor's team has a proven track record with 53 investments and 192 add-on acquisitions and divestitures over the years. The firm actively seeks growth opportunities in companies with the potential to lead in their respective sectors within Norway and Sweden, emphasizing organic growth, strategic acquisitions, and geographic expansion.

Norvestor currently manages a diversified portfolio that includes companies such as Panorama Gruppen AS, Life Europe AB, and Crayon Group Holding AS, demonstrating its commitment to fostering growth and creating value. Their approach is centered around partner engagement and developing tailored strategies for each portfolio company, ensuring sustained performance and competitiveness.

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From an expert perspective, the investment in Nomor by Norvestor has the potential to be a highly advantageous move. The pest control sector in Sweden is ripe for growth, supported by increasing demand for comprehensive pest management solutions. The continued emphasis on hygiene and food safety standards makes Nomor's services more critical than ever, ensuring a strong market position.

Furthermore, under the stewardship of experienced management and the strategic guidance of Norvestor, Nomor is well-positioned to seize emerging opportunities within the market. The pooling of resources and expertise will likely drive innovation and efficiency, resulting in improved service offerings for customers.

Overall, this partnership could enhance Nomor's market share while fulfilling burgeoning customer needs in pest control services, ultimately reflecting a sound investment decision. As long as the focus remains on operational excellence and proactive market strategies, the collaboration bodes well for sustained growth and profitability.

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