Target Company Overview

Sunds Fibertech, a growth-oriented company specializing in equipment for the manufacturing of wood fiberboards, has recently garnered several prestigious awards, including 'Best International Growth' at Ernst & Young's 'EY Entrepreneur of The Year,' as well as the DI Gasell and 'Company of the Year' in Timrå municipality. The company has now partnered with Priveq to accelerate its development and expansion.

Karl-Johan Willén, Investment Manager at Priveq, expressed admiration for Sunds Fibertech's rapid establishment as a key player in the global market, noting that the company operates within a niche with few competitors. He looks forward to collaborating with the founders and employees to position Timrå as a new center of excellence in fiberboard manufacturing.

Industry Overview in Sweden

For centuries, the coastal regions of Norrland have been the hub of the Swedish timber industry. In this landscape, Sunds Fibertech emerges as a promising industrial success story, bringing innovative and high-tech solutions for the manufacture of wood fiberboards. The company emphasizes reduced energy consumption, emissions control, and increased capacity in its production processes.

Since its inception in 2016, Sunds Fibertech has positioned itself as a technology leader in the equipment sector for fiberboard production. The company achieved a turnover of 233 million kronor in 2022, showing strong growth and high profitability, largely driven by its innovative technologies.

With a strengthened ownership structure, Sunds Fibertech aims to maintain its high rate of organic growth while pursuing strategic acquisitions aligned with its core business. The focus is on products that enhance energy efficiency, reduce environmental impact, and increase production capacity for fiberboard manufacturers.

Henrik Jatko, Investment Manager at Priveq, adds that Sunds Fibertech has developed niche efficiency-enhancing products for the global market through a customer-oriented service approach. He believes that energy efficiency and emissions control are areas that will continue to gain importance in the long-term future.

Rationale Behind the Deal

The partnership between Sunds Fibertech and Priveq is motivated by a shared vision of capitalizing on the company’s existing strengths. The involvement of Priveq as a major stakeholder aims to leverage its expertise in supporting the growth of international companies. The management's goal is to create a billion-kronor company within the next five years by integrating strategic acquisitions into Sunds Fibertech's operations.

Information About the Investor

Priveq is a well-regarded investment company focused on providing growth capital to innovative companies in various sectors. With a proven track record in developing international growth businesses, Priveq is looking to apply its experience and resources to help Sunds Fibertech expand its market footprint and enhance its product offerings.

View of Dealert

This partnership presents a compelling opportunity for both Sunds Fibertech and Priveq, suggesting a positive outlook for the investment. The strong growth potential within the construction and manufacturing sectors in Sweden, combined with Sunds Fibertech's established market presence and innovative technology, positions the company for substantial future success.

Furthermore, the focus on sustainability and efficiency aligns with current global trends, making Sunds Fibertech's offerings highly relevant. The partnership with Priveq could significantly enhance the company's ability to navigate the complexities of scaling operations internationally.

In summary, this deal reflects a strategic initiative to not only solidify Sunds Fibertech's leadership in its market but also to expand its reach in line with global demands for sustainable production methods. Should the management successfully execute their growth strategy, this investment could provide considerable returns in the coming years.

View Original Article