HOME DIY PROJECTS INCREASINGLY POPULAR
The kitchen brand group Ballingslöv International, bathroom furniture manufacturer Svedbergs, and Blomsterlandet were the winners among Stena Adactum’s holdings in 2020.The parts of the operations aimed at private homes offset the challenges faced by holdings targeting the B2B market.
Stena Adactum is Stena AB’s wholly-owned investment company. The investment model is based on acquiring companies with good potential for growth and profitability, and then taking the next step of developing and strengthening their operations as an active partner. The strategy is long-term. Many holdings – such as wholly-owned Ballingslöv International, Blomsterlandet and Envac – have been part of the portfolio since the early 2000s, when Stena Adactum was established. Today, the portfolio comprises nine companies with a revenue totalling around SEK 17 billion. From the start, there has been sound value growth. The portfolio has a market value of SEK 10 billion.
Stena Adactum’s single largest holding is Ballingslöv International, which comprises seven kitchen brands. Ballingslöv is among the year’s best performers, due to the increased interest in houses and homes. Another portfolio company, Blomsterlandet, also saw a strong sales increase. “In overall terms, we achieved a sound operating profit for 2020, as sales increased for the home oriented elements of our activities, which offset the challenges faced by holdings that target the B2B market,” says MD Anders Wassberg. Besides Gunnebo, this category includes Envac, a world leader for automated waste disposal systems, and the high-tech company Beijer Electronics. During the year, Captum, a consumer credit provider, refocused its activities towards kitchen customers of Ballingslöv International’s brands, which boosted its results.
MAJOR STRUCTURAL CHANGES
Anders Wassberg took up the position as MD of Stena Adactum in October 2020. Prior to this, he was CEO and President of Ballingslöv International. “Together, we’ve drawn up overall plans for each company in order to achieve our ambitious goal of doubling the value of our holdings every five years. This will be achieved through organic growth and acquisitions,” he says. One of the year’s large transactions for Stena Adactum was the delisting of Gunnebo together with Altor. Gunnebo is a global provider of security products, services and solutions, with companies in around 25 countries, and a presence in an additional 100 markets. “Since Gunnebo’s customers include major infrastructure providers, such as airports, the past year was tough. The products are highly relevant, however, and we can see great potential for the security solutions offered, such as access control and secure storage,” Anders Wassberg comments.
CLEAR SUSTAINABILITY PROFILE
Sustainability plays a key role for Stena Adactum. Part of the operations consists of using active ownership and board activities to influence the portfolio companies, and also to share knowledge within this area between the companies. “Many of our holdings also play a vital role as major employers in small towns,” says Anders Wassberg. In addition, several of the holdings have a clear environmental profile. These include Stena Renewable, which owns and operates 113 wind turbines with energy production of around 875 million kWh, equivalent to the cities of Lund and Malmö’s annual consumption of household electricity. In total, the company also builds an additional 88 wind turbines with production exceeding 1,100 million kWh. Envac also has a direct sustainability offering through its automated waste management systems.
In the year’s edition of the Swedish business paper Dagens Industri’s (Di) “Sustainable companies” ranking, Midsona received shared first place in the everyday commodities category. The company is also one of nine companies in Di’s “Sustainable portfolio”, i.e. companies that match their business model to a sustainable world. Ballingslöv International has also come far in its sustainability work – from circular design in product development, via careful selection of materials and care for resources, people and society, to the products’ actual CO2e footprint. This supports customers in making informed choices and building a more sustainable lifestyle. Blomsterlandet has the ambition to drive sustainability in the horticultural industry. During the year there was strong focus on increasing the ratio of own-produced electricity by installing solar panels on its properties. In the garden centres, efforts continued to help customers to make sustainable product choices, contributing to higher sales of garden products that benefit biological diversity. The icon shown below to the right is intended to guide consumers.
Blomsterlandet is a wholly-owned subsidiary of Stena Adactum that is subject to statutory sustainability reporting requirements, therefore more detailed sustainability information is reported for this holding. To reduce the company’s greenhouse gas emissions, the ratio of renewable energy has been increased and energy performance has been improved for the properties. In order to reduce the total energy consumption in store and office areas, investments have been made in LED lighting, and 50 per cent of the stores had LED lighting by the end of 2020. Furthermore, solar panels were installed at three properties in 2020.
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