Information on the Target

SELATEK has embarked on a strategic expansion by acquiring Kelmo, a full-service provider in the industrial automation sector with a specialization in the cable manufacturing industry. This sector has become increasingly significant in the context of the ongoing green transition, which emphasizes sustainable practices and technologies. The acquisition of Kelmo is a calculated move for SELATEK, enhancing its technical offerings and creating new collaborative opportunities within the automation and electrical engineering sectors.

Kelmo is based in Karlskrona and provides customized automation solutions to clients both domestically and internationally. Employing approximately 40 individuals, the company generates an annual turnover of about SEK 150 million. Kelmo boasts a comprehensive range of services, including design and programming, installation, and commissioning, establishing itself as a vital partner for industrial clients who demand high standards of quality and technical innovation. The current co-owners of Kelmo will remain in operational roles and take on shareholder positions within SELATEK.

Industry Overview in Sweden

The industrial automation industry in Sweden is thriving, driven by advancements in technology and the increasing demand for efficiency in manufacturing processes. With a strong engineering heritage, Sweden has positioned itself as a leader in innovation and sustainable practices. Companies in this sector are leveraging the latest technological advancements to improve productivity while reducing environmental impact, aligning with global trends toward sustainability.

In recent years, Sweden has seen substantial investments in industrial automation as businesses seek to enhance their operations and remain competitive. This growth mirrors the global shift towards Industry 4.0, where smart manufacturing and automated processes are rapidly being adopted. Swedish companies are adopting integrated solutions that encompass everything from robotics to intelligent software, leading to a more interconnected manufacturing landscape.

Furthermore, Sweden’s commitment to sustainability and green technology has driven investments in sectors such as renewable energy and electric mobility. As part of this trend, the industrial automation market is poised to expand as companies seek innovative automation solutions that contribute to environmental goals. This provides a fertile ground for players like Kelmo who specialize in automation tailored for evolving industries.

The local industry also benefits from a robust infrastructure and skilled workforce, facilitating growth and the continuous development of new automation solutions. With Sweden being one of the top countries for technological adoption, the outlook for the industrial automation sector remains promising. Stakeholders are keenly focused on developing new partnerships and leveraging collective expertise to foster innovation and drive future growth.

The Rationale Behind the Deal

This acquisition aligns with SELATEK’s long-term strategy to bolster its service offerings and enhance its capabilities within the industrial automation domain. Bringing Kelmo into the fold allows SELATEK to tap into specialized expertise in automated solutions for the cable manufacturing industry, which is crucial for the emerging green transition. Furthermore, the integration of Kelmo’s operations into SELATEK’s existing framework will enable cross-collaboration that can unlock new growth avenues across the Group’s operations.

By combining resources, both companies can leverage each other’s strengths, ultimately benefiting their customers. The deal reinforces SELATEK’s commitment to innovation and quality, facilitating the development of new solutions aimed at fostering sustainable practices and technological advancements in the industrial sector.

Information About the Investor

SELATEK is a prominent player in the automation and electrical engineering sectors, known for its dedication to providing innovative and efficient solutions tailored to its clients' needs. The company has garnered a reputation for its technical excellence and commitment to sustainability, supporting its clients in navigating the complexities of modern industrial challenges.

Under the leadership of CEO Magnus Löfgren, SELATEK has pursued a strategic growth path, focusing on expanding its service portfolio and capabilities through both organic growth and acquisitions. The company places significant emphasis on establishing long-term partnerships and integrating state-of-the-art technology into its operations, making it a respected name in the industry.

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From an investment perspective, the acquisition of Kelmo by SELATEK presents a compelling opportunity to capitalize on the growth potential within the industrial automation sector. Kelmo’s established client base and specialized expertise will complement SELATEK’s existing offerings, enhancing overall market competitiveness. As industries increasingly prioritize sustainability, Kelmo’s focus on solutions within the cable manufacturing space aligns perfectly with the evolving backdrop of green initiatives.

The integration process is expected to yield significant synergies, making operations more efficient and diversifying the service offerings available to customers. In light of the pressing demand for innovative automation solutions in Sweden's industrial landscape, this acquisition is likely to bolster SELATEK’s market position and pave the way for long-term growth.

Moreover, retaining Kelmo’s existing co-owners in operational roles ensures continuity in leadership and reinforces the company culture, fostering a smooth integration. This strategic move not only strengthens SELATEK's overall capabilities but also enhances its growth trajectory as it navigates the future of the industrial automation industry.

In conclusion, this acquisition appears to be a sound investment for SELATEK, with the potential to generate substantial value for all stakeholders involved, including increased innovation and improved service delivery through collective expertise.

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