31.1.2024
Kotera Group Oy and the owners of LVI Kurikka Oy, RKM Group Oy, TT-Teknologia Oy and Bark Oy have decided to join forces and form a group called Kotera Group, under which industrial construction, damage renovation and repair construction will be concentrated, and LVIAS- technical contracting and maintenance companies.
Mergero acted as an advisor in the project.
The combined turnover of the companies is 75 million euros and the EBITDA is about 6.5 million euros.
To implement the acquisition strategy, Kotera Group Oy has negotiated a significant capital investment with a fund managed by the Swedish investment company Bragnum Invest. The invested funds will be used to implement Kotera Group Oy’s corporate acquisition strategy, which targets small and medium-sized companies with high profitability and cash flow, offering specialized expertise. The Finnish investment company Korpi Capital Oy continues to be the largest individual owner of Kotera Group Oy.
Lars Österberg, the founder and principal owner of Bragnum Invest, who has extensive experience in Nordic companies focused on service business, has been appointed chairman of the board of Kotera Group Oy. Österberg has operated e.g. On the boards of Bravida, Layer Group, Alimak Group, Eitech, Netel and Metrolit. As Österberg’s colleague on the board of Kotera Group Oy, e.g. Korpi Capital’s partner Mikko Fischer, who has served on the boards of the companies affiliated to the group, according to Korpi Capital, since its inception.
The CEO of Kotera Group Oy is Tuomas Forsberg, who has extensive experience in Finnish construction companies, e.g. From Skanska, Terrawise, SRV and most recently Asfalttikallio, where Forsberg served as CFO and Vice President before moving to his current position.
“The idea of a Finnish serial buyer in the construction industry has been sprouting for a long time. There are many good small and medium-sized companies in the industry with strong cash flow, but no sensible investment targets for their cash flow. However, many companies have difficulty finding a buyer who will continue and respect the company’s way of working. At Kotera, entrepreneurs can continue to develop and grow their company, while at the same time receiving support and resources for company development from other companies in the group.
Entrepreneurs who sell their companies to Kotera invest part of the purchase price in Kotera shares. These shares generate significant additional income for the entrepreneur, because within Kotera we are able to efficiently channel the companies’ cash flow into new acquisitions and growth investments.
There are many examples in the world where a large amount of value has been destroyed by forcefully merging companies with very different cultures and operating methods. Kotera respects the processes and operating methods built by the companies being acquired. This is often also an attractive starting point for company owners and management.” Kotera Group CEO Tuomas Forsberg says.
“LVI Kurikka, RKM Group and Bark are each top companies in their field and create a strong platform for implementing Kotera’s acquisition strategy. We have a good team spirit and the team has positioned itself strongly behind the common goal,” continues Tuomas Forsberg.