Bo Annvik

"Rooted in industrial heritage, Indutrade always prioritized successful entrepreneurs that are great operators, the best at what they do. But as the portfolio shifted towards proprietary products, Annvik judged that there were even more possibilities to expand organically. He shifted to acquiring companies in industries with sustainable and structural growth tailwinds. He also pushed deal responsibilities for acquisitions out from headquarters. This increased the pool of people capable of making capital allocation decisions, and with that came a greater number of opportunities. So far, under Bo Annvik’s leadership, the company has grown sales from SEK 13.5bn ($1.35bn) to SEK 32.8bn ($3.28bn). During the same period, EBITA grew from SEK 1.5bn ($15m) to SEK 4.75bn ($475m). The share price has appreciated 300%, beating the overall Stockholm index by a factor of four which increased by 67% over the same period. Buy great companies that generate money—and repeat Indutrade’s business philosophy for creating long-term shareholder value is simple. In the words of former CEO Johnny Alvarsson:"

"As new CEO, Bo Annvik grasped that to continue to grow Indutrade profitably without compromising returns on capital, even more capital needed to be deployed outside the Nordics. He needed places where the competition for deals was lower, but the quality of acquisition targets and price dynamics remained as attractive. It might have been easy to fall into deals for the sake of deals and scale for the sake of scale. But Annvik displayed his value investing skills: he sought the best deals at the highest returns, irrespective of business area or geography. He was always looking for the best long-term value for money. This was largely found outside the Nordics, with 60% of acquisitions completed in other countries."