Svedbergs Group: Feedback from ABGSC Investor Days - ABG

CEO spoke about acquisition synergies
Group collaboration could drive growth and margins
Thebalux acquisition lifts group margin above 15%


Acquisitions that make sense

Over the past couple of years, Svedbergs has turned away from being a cash cow with little in the way of growth, and stalled profitability, to being an acquisition-led growth machine driving margin improvements. We like the change of strategy. Svedbergs Group is run with a decentralised structure, the head office employs four people, but it manages to gain synergies across the group nonetheless. An example is the recent launch of bath tubs in Roper Rhodes. Already having the supplier base, product knowledge and ESG-related calculations (EPD), the process of product diversification is quicker and cheaper than otherwise. Thebalux, the most recent acquisition, does not sell faucets (Cassøe does), bath tubs (Svedbergs does) or shower heads (Macro Design does). We believe there is growth potential in adding products by leveraging internal competence. Purchasing synergies between Thebalux and Svedbergs, two producing companies with similar suppliers, could be a profitability driver.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/svedbergs/Equity-research/2024/5/svedbergs-group---feedback-from-abgsc-investor-days/