Tetra Laval

"25 years after Gads family, with Kirsten, Jörn, and Finn, took over, it appears that the sale was a successful transaction, from Tetra Laval’s perspective. The magazine Affärsvärlden estimated that the corporate group had a turnover of 54 billion kronor at the time of acquisition. The same source believed that turnover had doubled 15 years later. Growth has since increased further to a turnover of around 140 billion in 2019."

"For the company’s part, Hans Rausing’s sale was a dangerous step. When the figurehead, who had been there for more than 40 years, completely disappeared from the business, it sent a signal that could be interpreted as him no longer believing in the company. Internally, such an action could have created confusion and uncertainty. Externally, it may have contributed to casting doubt about the company’s future and spreading uncertainty among customers. And it all depends on the company always being family-owned. In a typical publicly traded company, it is not nearly as dangerous when, for example, the CEO or chairman of the board resigns, since the focus there has not been concentrated to the same extent on one or a few individuals. At the same time, an external sale of Tetra Laval would most likely have meant that it would have been difficult to keep the group together and continue with the very long-term strategy that the Rausing family had driven. In the case of Tetra Laval, it has become such that it is almost impossible to tell where the boundary between the Rausing family and the company lies. Though it is not the whole truth, the two appear almost synonymous to employees and the public."

"There is no doubt that Tetra Laval has both the resources and expertise to meet the threats. There seems to be no shortage of ideas and initiatives, but as usual, it will cost enormous amounts to develop them and bring them to market. A competent management team is required, one that has the knack for which ideas should be stopped or supported. Naturally, the family can hire such a management team, but given the extensive resources required, the family must actively participate in the long-term and more strategic decisions based on their ownership role. In an innovation company, this is crucial. Otherwise, the company risks withering and eventually failing."

"The day after, the front pages of the newspapers were dominated by the biggest corporate purchase in Swedish history – carried out by a single family. Through the purchase of Alfa Laval, Tetra Pak gained control over the entire production chain from milking to packaging. On January 1, 1993, the two companies merged and a new major corporation, Tetra Laval, was created."