Record performance and strong value creation in the portfolio
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. Stena Adactum’s strategy is based on long-term ownership. Several of the holdings, such as wholly-owned Ballingslöv International, Stena Adactum’s largest individual holding, and Blomsterlandet and Envac, have been included in the portfolio since the early 2000s, when Stena Adactum was formed. Today, the portfolio comprises nine companies with revenue totalling around SEK 19 billion. From the start, there has been sound value growth. At the end of 2021, the company’s net asset value was almost SEK 13 billion, an increase of 33 per cent compared with the previous year.
Summary of 2021
The investment company Stena Adactum recorded record results for 2021, despite a challenging year with increased costs and shortages of goods due to the pandemic. At the same time, consumer-focused holdings benefited from the increased interest in the home, which led to strong growth. In total, the net asset value of the portfolio increased by 33 per cent.
“We have an ambitious growth target to double the value of the portfolio in five years, i.e. by around 15 per cent per annum – which we are proud to have exceeded in 2021 and also since the start of Stena Adactum. For the first time, in 2021 we also recorded a profit of more than SEK 1 billion,” comments Stena Adactum’s MD, Anders Wassberg.
Increased order intake
Several of Stena Adactum’s holdings benefited from the house and home trend, with increased demand for goods such as kitchens, bathrooms and garden products. The kitchen brand group Ballingslöv International, bathroom company Svedbergs and gardening company Blomsterlandet all recorded an increase in sales during the year.
The B2B category within Adactum includes the security company Gunnebo; Envac, which is a world leader in automated waste management; and the high-tech company Beijer Electronics.
“In the second half of the year, there was a sharp increase in order intake for our B2B holdings, which were previously severely affected by the pandemic. Supply chain disruptions and major difficulties in obtaining both materials and components led to major cost increases. But our companies were good at working with customisation and pricing to meet the new reality,” says Anders Wassberg.
Alecta is new co-owner of sr energy
In the spring of 2021, Alecta became a new co-owner, and thereby increased its holdings in SR Energy, formerly Stena Renewable. This is an important company for Stena Adactum, with a clear environmental profile, and during the past 15 years it has established a strong position within wind power projects in southern Sweden. SR Energy currently has one of the large commissioned wind power portfolios in Sweden, totalling 315 MW. In addition, SR Energy has projects for an additional almost 600 MW that are ready for development or under construction.
“With Alecta – and also AMF and KLP in Norway – we have three of the Nordic region’s leading institutional investors as partners. They share our long-term ambition to build a large green energy company with a focus on sustainability. This will further strengthen the company’s rapid expansion,” comments Anders Wassberg.
New acquisitions and stronger ownership
Stena Adactum’s holdings completed two acquisitions at the close of the year. Svedbergs acquired Roper Rhodes, a well-established supplier and designer of bathroom furniture and products in the UK, while Envac acquired American PAC, specialising in industrial solutions within healthcare.
“Through this acquisition, Svedbergs is establishing a strong market position in the UK. For Envac, the acquisition of PAC means that the
company is entering the important US market and that we now have a stronger focus on health and medical care,” comments Anders Wassberg.
An ambitious and clear sustainability profile
Sustainability plays a central role for Stena Adactum, and during the year the company saw increasing interest from financiers in sustainability issues.
With a long-term strategy for its holdings and as a responsible owner, Stena Adactum helps to develop strong and profitable companies where sustainability is integrated into the business. It is important that the companies take a long-term approach and are transparent in their communication. Several of the companies play an important role as employers by offering jobs in small towns and contributing to local communities.
Stena Adactum supports and influences the portfolio companies in their sustainability work by sharing knowledge, and by raising and setting requirements for the companies through their Board work. The wholly-owned portfolio companies have ambitious sustainability targets, KPIs and follow-up on site within the framework of Stena’s four focus areas, adapted to the sector in which the company operates.
For the portfolio company Envac, the link to sustainable development is particularly clear, as this company offers automated waste suction systems that create smart solutions for safer and cleaner residential areas.
The portfolio company Midsona develops and markets strong brands within health and well-being. During the year, the company was recognised for its sustainability work by the non-profit environmental organisation CDP (Carbon Disclosure Project). Midsona received a prestigious CDP rating of A–, as one of the best listed companies in the world when it comes to climate change strategy and leadership. For several years Midsona has also scored well in Dagens Industri’s “Sustainable Companies” ranking.
Ballingslöv International is another company that is a strong leader within sustainability, with a focus on circular design, careful choice of materials and promotion of a sustainable lifestyle.
Blomsterlandet’s ambition is to be a driving force for sustainability activities in the horticulture industry. One example is the energy area, where the company works with the installation of solar cells in its own property portfolio, reduced distances between production and end customers, and the transformation to fossil-free transport.
Ambitious plan for continued growth
According to Anders Wassberg, one of Stena Adactum’s key strengths is the strong shared values that permeate the entire company, with clear delegation of responsibility. This creates both commitment and business focus.
“Our long-term approach and security of ownership, combined with our foundation as a family-owned company, make us an attractive owner, from which we reap the benefit when potential new acquisitions are considered. We are proud of our heritage. This is something we live with and manage on a daily basis.”
“Now we will continue to build Stena Adactum. We are looking at the possibility of increasing the number of holdings in the portfolio from nine to ten in 2022,” says Anders Wassberg.
Share of Total income
Capital employed, MSEK