We are building strong platforms
Growth through acquisitions is a central component of Volati's business strategy and one of the primary drivers of our success. We are determined to create lasting value through carefully selected acquisitions of well-managed companies that complement our operations and strengthen our market presence. Lately, we have successfully shifted our acquisition strategy towards value-creating add-on acquisitions to existing platforms. At the same time, we continuously evaluate acquisitions of new platforms that fit well into our model. Our strategy involves regular acquisitions of companies with strong local ties, where the well-being of employees and the company's role in the local community are the focus. This is something we have a deep understanding of and respect for.
Why sell to Volati?
We are passionate about continuing the long-term development of the industries we operate in, together with the businesses we acquire. Volati's extensive experience in executing acquisitions, combined with an active board, enables quick decision-making and effective management of complex acquisition situations. A common thread in all acquisitions is that our corporate development strategy is based on preserving the entrepreneurial spirit of the acquired companies while adding leadership, knowledge, processes, and financial resources.
Volati is more than an investor; we are committed partners striving for mutual success and long-term growth.
High transaction security: We have a track record of only entering deals that we intend to complete. Our front-loaded process means that we typically have all internal mandates in place before the due diligence, providing early reassurance to sellers.
Expertise: With over 20 years of experience and a passion for understanding and developing businesses in various industries, Volati offers the competence you need in a potential parent company.
Efficiency: We can offer a pragmatic acquisition process without heavily relying on external expertise, and we are known for making quick decisions when necessary. Our active board, combined with straightforward processes, ensures fast business decisions.
Customized strategy: Every company and situation is unique, and we understand this. Volati tailors strategies and acquisition processes to fit your specific situation.
Companies we are seeking – Focus on long-term value creation
Volati is seeking both companies in new markets and companies that complement our existing business areas. A platform acquisition would become a new unit within Volati, while add-on acquisitions are about strengthening and expanding our existing platforms.
Add-on acquisitions
- Alignment with an existing platform within Volati
- Strong market position
- Not dependent on size
- Europe
Platform acquisitions
- History of strong profitability & robust cash flows
- Market leader or holds a strong market position in its niche
- Proven business model over time
- The Nordics
Acquisition Process
Volati's acquisition process is designed to streamline and shorten the sales process while increasing the likelihood of a successful deal – without compromising the security for either the seller or the buyer. Here's how it works:
- Evaluation - We are meticulous in our assessment of new acquisition opportunities and prioritize quality over quantity. Our fundamental principle is to be cautious and rather abstain from a potential deal if we are not convinced of its value, rather than risking a poor investment.
- Due Diligence - If the acquisition qualifies beyond the evaluation, we proceed with a due diligence (DD) process. This involves a more thorough examination of the company's operations. In most cases, the majority of this work is conducted internally, meaning we do not engage external consultants extensively. Our philosophy is to focus on key issues and operate on the materiality principle to offer as smooth a DD process as possible.
- Negotiation - After a successful DD process, negotiations ensue between Volati and the seller, where we agree on a reasonable arrangement for both parties. Subsequently, the agreement can be signed, and the deal finalized.
- Integration - Upon completing the deal, the work begins to integrate the acquisition into Volati's ownership structure. This process is equally as crucial as the deal itself. Even during the acquisition process, we spend time with the company's leadership to collaboratively develop a forward-looking plan.
We are always open to new acquisition opportunities and maintain continuous contact with companies that we find attractive. Concurrently, we have strong connections with several advisors and business brokers. With us, you can execute the deal either with or without advisors; we have experience with both approaches.
Example acquisition
Tornum
Tornum - the first step.
The first major step toward the Volati of today was taken with the acquisition of the grain handling systems manufacturer Tornum in 2004. In our analysis, we had identified excellent growth potential for Tornum in Eastern Europe. With the support of measures including the successful recruitment of a managing director and a new management team, the expansion plans could be realized and Tornum tripled sales in the 2004–2008 period. Tornum is still part of Volati and is currently the largest dryer supplier in Europe and one of the largest in its segment in grain systems.
Tornum was also the first time several of the core ideas behind Volati were tried out: the company was financially stable and, in parallel, there were potential growth opportunities and scope, with new management, to develop the company in other areas. Another factor was the company's sector, grain dryers. It is easier to find a reasonably valued company in sectors that do not attract most interest and which attract capital that is controlled more by intellect than by emotion.
Lomond Industrier/Salix Group
‘Oh, is Lomond for sale?’
Patrik Wahlén clearly remembers his surprise and delight to discover in March 2015 that Lomond Industrier (now Salix Group) was seeking new owners. Patrik immediately saw the potential in Lomond, a well-managed and expanding group of companies with strong brands in the Nordic iron and professional building materials sector. It quickly became clear that the acquisition of Lomond would be the largest yet for Volati.
It’s no exaggeration to say that Lomond is a logistics professional. Its hub is the joint distribution warehouse of Thomée and Habo in Malmö. 15,000 order rows are processed there every day. One of the best selling products is Habo’s door handles, of which 100,000 pairs a month pass through the central warehouse before being delivered to customers such as XL-bygg, Woody, Beijer and other building supply chains in the Nordic countries.
Many documents were examined in the due diligence process to ensure that Lomond fulfilled the expected level of quality. As with all business deals, some questions needed clarifying. It was a complex deal that had to be concluded in a short time. However, at the end of May all the papers were signed and Lomond Industrier was welcomed into the Volati family.
Lomond laid the foundations for the Salix Group, which today operates, develops and acquires companies providing products for building and industry – primarily hardware, consumables, material and packaging. There is also a strong offering of products for Home & Garden and for Agriculture & Forestry. Through continued and selective acquisitions, the group now comprises several companies operating in different countries.
T-Emballage
Proud to take over the rudder
On 10 November, Volati acquired the family-owned company T-Emballage, based in Vetlanda in Småland, Sweden.
See the film about T-Emballage (in Swedish) »
"T-Emballage had long been on our "golden list" of companies we would like to acquire. It's a really well-run company with a good reputation in the industry, fine products and good profitability. We're proud to take over the rudder of Håkan and Elisabeth Thuresson's life's work," says Patrik Wahlén, founder and member of Volati's Board of Directors. T-Emballage was actually on the look-out for its own add-on acquisitions as a way of broadening the company. After meeting Volati, the idea was born that there was considerable development potential in becoming part of the Volati Group. "We hit it off at our first meeting and we discovered that we shared the same values and view of the company. We could see that sale to Volati could be a way for T-Emballage to develop its activities and I'm certain that this is a good deal for the company and the staff," says Håkan Thuresson, former principal owner of T-Emballage.
Ettiketto Group
Five add-on acquisitions in 1.5 years.
Ettiketto joined Volati in 2011 and has since then undergone a strong journey with several add-on acquisitions. This acquisition journey began in June 2020 with the acquisition of Beneli AB, a company in Helsingborg, followed by the acquisition of Märkas AB the same year. Ettiketto’s third synergistic add-on acquisition took place in 2021 with the acquisition of StrongPoint Labels. This significantly strengthened the Group’s offering on the Swedish market and allowed a strategic entry to be made in the Norwegian market.
In November 2021, Ettiketto took a further step by acquiring Jigraf AB, followed just a few months later by a fifth acquisition in January 2022, this time of the Norwegian company Skipnes Etikett AS. Skipnes further strengthened Ettiketto’s position in the Norwegian market, making it one of Norway’s leading label producers.
The five add-on acquisitions carried out by Ettiketto in rapid succession between June 2020 and January 2022 have strengthened Ettiketto’s market position in the Nordic countries and created value through synergies. Identifying potential acquisition candidates capable of strengthening the business unit through synergy benefits has been a winning concept for Ettiketto. All the acquisitions coincided with the company’s growth strategy and planned geographic expansion.
‘Volati has a stated ambition to create strong business units that can be developed through acquisitions. The aim is for some of them to be developed, in the longer term, into new business units in the Volati Group. Ettiketto is a good example of that. The acquisitions are aligned with Ettiketto’s growth strategy and strengthen us as a comprehensive supplier of label solutions,’ Nicklas Margård, Head of Business Area Industry.
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Sell to Volati
Are you looking to sell your business, or you are just curious and want to know more about Volati?
Do not hesitate to contact Volati, +46 (0)73-096 15 53 or investeringar@volati.se.