“Through Inwido, we industrialised a highly traditional sector. We have made the most of cultural and local aspects, while simultaneously benefiting from industrialisation and consolidation. This has allowed us to create substantial values,” says Henrik Lundh who was responsible for Ratos’s investment in Inwido.
From the start, Ratos had planned to create a Nordic market leader. At the time of the acquisition in 2004, the company had some 1,000 employees and sales of over SEK 1.2bn. In 2015, sales had escalated to SEK 5.2 billion and the number of employees to approximately 3,400. Over the course of a few years, 30-something acquisitions were completed in the Nordic countries, after which ensued a period of integration and streamlining during which Inwido created considerable synergies in product development, production, distribution, marketing and sales. Meanwhile, many local brands were retained, thereby securing the customers’ different national preferences.
Today, Inwido is Europe’s largest, most profitable door and window manufacturer.
In total, the investment in Inwido generated a surplus of SEK 3bn for Ratos and an IRR of 16%. After a tentative start, the IPO in September of 2014 was a huge success. At 31 December 2015, the share had risen 63%, compared with 7% for OMXSPI.
“Due in large to its consumer focus, Inwido is a company we saw would be perfect for the stock exchange. Ratos is not only a responsible owner, but also a responsible seller,” says Henrik Lundh.
“Ratos has had a long-term and professional approach, been highly adaptable and exhibited a good understanding for us and the industry. This created the right conditions for our strong performance,” says Håkan Jeppson, CEO of Inwido.
Facts about the investment
Investment year: 2004
Sales (SEKm): 1 235
Reported EBITA (SEKm): 135
Exit year: 2014
Sales (SEKm): 4 916
Reported EBITA (SEKm): 502