Target Information

Nomor Holding AB, along with its subsidiaries, is recognized as the fourth largest pest control company in Europe, boasting comprehensive nationwide coverage in Sweden and Norway. Established as a significant player in the pest control sector, Nomor operates within three primary service areas: pest control, food safety, and home & house services. The company serves a diverse clientele, including insurance providers, property owners, municipalities, and the HoReCa industry, with its corporate headquarters strategically located in Sollentuna, just outside Stockholm, Sweden.

Industry Overview

The pest control industry in Sweden and Norway has seen substantial growth, underpinned by increasing urbanization and a rising awareness of public health concerns. The demand for pest management services is being driven not only by residential needs but also significantly by commercial clients, including restaurants and hospitality enterprises, which require strict hygiene standards. These factors collectively contribute to the resilience and expansion potential of the sector.

In Sweden, the pest control market is characterized by dense population centers and a high standard of living, enabling companies like Nomor to provide tailored solutions to meet varied customer demands. The regulatory frameworks governing pest control practices prioritize environmentally friendly methods, which has prompted service providers to innovate and offer sustainable options.

Norway's pest control industry parallels that of Sweden, marked by increasing environmental awareness and a growing emphasis on the importance of pest management for public health. Both markets present significant opportunities for growth, particularly in the commercial sector. The introduction of new technologies and advanced pest control methods offer a pathway for companies to improve service quality and operational efficiencies.

The competitive landscape in the Nordic pest control industry includes both local and international players. However, with the strategic acquisitions undertaken by companies like Nomor, the barriers to entry for new competitors have become heightened, solidifying the market position of established organizations.

Rationale Behind the Deal

The divestment of Nomor by Norvestor to ServiceMaster Global Holdings marks a strategic alignment of interests, facilitating further expansion of Nomor within the European market. Over the years, Norvestor has significantly enhanced Nomor's operational framework, enabling the company to execute nine strategic acquisitions which bolstered its market presence and resulted in revenue growth from SEK 104 million in 2013 to approximately SEK 500 million.

Given ServiceMaster's established expertise in the pest control space, this acquisition is seen as a synergistic opportunity that will allow Nomor to leverage ServiceMaster's global network and resources while continuing its upward trajectory in growth and market expansion.

Investor Information

Norvestor VI, L.P. is a prominent private equity firm with a focus on lower mid-market buyouts in the Nordic region. Since its inception in 1991, Norvestor has established itself as one of the most experienced teams in private equity across the Nordics, having completed 71 investments and over 250 add-on acquisitions. With a successful track record of executing 48 exits, including 15 IPOs, Norvestor specializes in identifying and nurturing growth opportunities to transform companies into leaders within their respective sectors.

Norvestor's hands-on approach and extensive expertise in mentoring growth companies have been instrumental in enhancing Nomor's capabilities, providing the necessary support and guidance to navigate the competitive landscape of the pest control industry effectively.

View of Dealert

The divestment of Nomor to ServiceMaster can be interpreted as a strategically sound investment move with potential for continued success. During Norvestor's ownership, Nomor adeptly executed a buy-and-build strategy that not only expanded its service offerings but also significantly boosted its operational scale. This growth trajectory illustrates Nomor's potential to dominate the Nordic pest control market further.

From an investment perspective, the partnership with ServiceMaster is promising, given the parent company’s extensive experience and established market presence in pest control services. This collaboration could enhance Nomor's operational capabilities, allowing for new innovations and access to broader markets across Europe.

Moreover, the increasing demand for pest control services across Europe, fueled by heightened health and safety concerns, suggests that Nomor is well-positioned to capitalize on market trends. The operational resources that ServiceMaster brings can significantly support Nomor in catering to this burgeoning demand effectively.

In conclusion, this transaction not only affirms the value generated during Norvestor’s stewardship of Nomor but also sets the stage for the company’s future expansion within a robust and growing market. Overall, this acquisition appears to be a strategic win for both parties, with high potential for both sustained growth and profitability in the coming years.

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