Polaris Private Equity, a Danish/Swedish mid-market private equity investor, has acquired HTC Sweden, a developer and manufacturer of professional floor grinding systems and floor solutions.
Polaris has acquired the company from Håkan and Gunn Thysell, who founded HTC in 1987 and have remained majority owners with a 60 per cent stake. 3i Group and former management, who held 40 per cent, have also sold their interest in the company to Polaris, in what is the firm’s sixth platform investment since the start of 2012.
Headquartered in Söderköping, Sweden, HTC has been growing rapidly in recent years, driven by expansion into new geographic markets and the launch of new products. The company has 165 employees, and subsidiaries in the US, Germany, the UK and France, with coverage of an additional 60 countries through distribution partners. In 2012, the company generated revenues of SEK370m and EBITDA of SEK58.5m.
HTC uses new methods for floor preparation and floor solutions which are cheaper, sturdier, more environmentally friendly and longer-lasting compared to other options available on the market today.
Polaris will now focus on supporting HTC in an ambitious growth strategy, based on organic and acquisitive expansion. The company will seek to consolidate its position in key geographies such as Europe and the US, as well as to extend its offering into emerging markets such as China and Brazil.
Peter Ankerst, partner at Polaris, says: “We are delighted to have completed the buyout of HTC Sweden. This is a highly scalable business led by an impressive, visionary management team, which has shown its credentials in recent years, growing both revenues and margins despite tough economic conditions. There are now exciting opportunities to transform HTC into a truly global leader in its field, and we look forward to helping the company deliver on these growth plans.”
Lars Landin, chief executive of HTC, says: “HTC has seen a strong expansion in recent years, with both the Twister and Hardware divisions contributing positively to top-line growth and earnings. Having Polaris as a new owner will give us wider access to the skills and capital resources required for the company to reap the benefits from the next stage of development which includes increased penetration and several near term growth venues.”
