Bergman & Beving Expands Acquisition Strategy and Renames Divisions to Reflect Broader Vision

Bergman & Beving AB, a stalwart in the Swedish industrial and construction sectors, has unveiled a significant strategic shift aimed at bolstering its market position and enhancing profitability. The company has announced a broader acquisition strategy, targeting niche B2B technology firms with strong market positions, primarily in the Nordics and the United Kingdom. This move is designed to achieve an annual earnings contribution of 50-80 MSEK, with a focus on higher operating margins and profitability levels.

In line with this new strategy, Bergman & Beving has also rebranded its divisions to better reflect its expanded vision and strategic direction. The Building Materials division will now be known as Core Solutions, Tools & Consumables has been renamed Industrial Equipment, and Workplace Safety will be called Safety Technology. This rebranding aims to create clarity for employees, the stock market, and the acquisition market, aligning the divisions more closely with the company's long-term goals.

Core Solutions will continue to offer products and solutions that are integral to customers' end products, such as fastening products, metal ceilings, and fireproofing for ships. Industrial Equipment will provide tools, instruments, and machines necessary for completing customers' products. Safety Technology will focus on companies offering safety products and solutions, including personal, area, technical, and fire safety.

Magnus Söderlind, CEO and Group President of Bergman & Beving, expressed confidence in the company's new direction, stating, "Our broader acquisition focus, combined with higher requirements for operating margins and profitability levels in our acquisitions, gives us good conditions to deliver on our goals of 500 MSEK in EBIT with an EBIT margin of 10 percent." This ambitious target underscores the company's commitment to sustainable growth and profitability.

Founded in 1906, Bergman & Beving has a long history of acquiring and developing leading companies with a perpetual ownership horizon. The group's autonomous companies operate in expansive niches, providing value-creating solutions for industrial and construction customers. The decentralized management model has been a cornerstone of the group's growth, profitability, and sustainable development for over a century.

Currently listed on Nasdaq Stockholm, Bergman & Beving comprises approximately 30 companies represented in over 25 countries, employing around 1,300 people and generating annual revenues of approximately 5 billion SEK. The company's new strategic direction and division rebranding are expected to further strengthen its market position and drive future growth.

For investors, Bergman & Beving's strategic shift and ambitious growth targets present an optimistic outlook. The company's focus on acquiring high-margin, profitable businesses in niche markets, combined with its strong historical performance and decentralized management approach, make it a compelling investment opportunity. As such, the recommendation is to buy Bergman & Beving shares, capitalizing on the company's potential for sustained growth and profitability.