Nordic Capital acquires Sortera, a growth leader within recycling, to support accelerated expansion and the development of industrial solutions for the circular economy
March 08 2021
Nordic Capital has signed an agreement to acquire Sortera, the fastest growing environmental services provider of focused recycling and waste solutions in Sweden. Sortera has grown by assisting both the environmental and operational performance of its customers. Nordic Capital intends to accelerate Sortera’s ongoing international expansion and further strengthen its sustainable service offering.
Sortera is a fast-growing Nordic environmental contractor within collection, recycling, processing and broking of residual products from the building and construction sector. Sortera operates primarily within the B2B SME segment in Sweden and Finland through its three business areas: Recycling (RMI construction recycling services), Materials (End-to-end environmental solutions for waste and water) and Industry (Industrial removal of bulk materials and liquids). Through its operations, Sortera contributes to a circular economy in construction – the second largest recycling opportunity globally after the mining industry. The Company’s services enable the increased use of old materials in new construction, reducing the need for raw materials and hence Greenhouse Gas (GHG) emissions. Sortera is based in Stockholm, Sweden and has recently expanded into Finland. Since its inception in 2006, the Company has grown to become one of the market leaders in Sweden by focusing on environmental concerns, and by offering its customers increased flexibility, high reliability, short lead times, excellent quality, and superior customer support. Sortera has circa 420 employees and revenues of approximately SEK 1.4 bn in 2020.
Nordic Capital is an active owner with deep experience in growing industrial and business services companies, in which it selectively invests. By closely following the sector, Nordic Capital has gained significant knowledge of the construction recycling industry where it sees strong potential for growth. Nordic Capital has strong credentials in ESG and sustainability lies at the heart of its investment strategy. The ambition is to contribute operational and financial resources to support Sortera’s, international sustainability journey in close partnership with the Company’s management team and founder Conny Ryk.
“During 2020 we further strengthened our market position and continued to invest in future growth. With our recent acquisition in Finland, we have taken the first step to replicating the success in new markets. I am proud of what we have accomplished and look forward to continuing the journey together with Nordic Capital and maintaining the best interests of our employees, customers, and suppliers,” comments Sebastian Wessman, CEO of Sortera.
“Nordic Capital is very impressed with what Sortera and the owners have built so far and is excited to support the continued journey. We have followed Sortera for a long time and believe that Nordic Capital has the expertise and resources to support the management team in the forthcoming international expansion that Sortera is embarking upon. This investment is at the core of Nordic Capital’s Responsible Investment and Industrial & Business Services investment strategy, and Sortera will be able to leverage on the experience that we have gained from similar journeys and our broad external network. The positive climate impact generated by companies like Sortera is becoming more important and relevant given the environmental challenges that we all face today,” says Andreas Näsvik, Partner and Head of Industrial & Business Services, Nordic Capital Advisors.
Nordic Capital invests selectively in the Industrial & Business Services sector where it has deployed
more than EUR 3.7 billion in 39 platform investments since inception. These include current portfolio companies Consilium Safety Group, iLOQ and Cary Group (formerly Ryds Bilglas) and former investment Anticimex.
The terms of the transaction with the seller Summa Equity were not disclosed. The transaction is subject to customary regulatory approvals.
Sebastian Wessman, CEO
Tel: +46 72 886 95 97
Katarina Janerud, Communications Manager
Nordic Capital Advisors
Tel: + 46 8 440 50 50
Sortera Group is a Nordic environmental company which, through its three business areas (Recycling, Industry and Materials), strives to be the leading environmental entrepreneur on the Nordic market, with solutions that contribute to increased sustainability and improved environmental performance in all of the company’s operations. With just over 420 employees and a turnover of ca SEK 1.4 billion, Sortera conducts its own operations from sales, collection, treatment and recycling to final recipients. Sortera performs daily services for thousands of companies and private individuals in the Nordic region.
About Nordic Capital
Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 16 billion in over 110 investments. The most recent fund is Nordic Capital Fund X with EUR 6.1 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, Denmark, Finland, Norway, Germany, the UK and the US. For further information about Nordic Capital, please visit www.nordiccapital.com
Footnote: “Nordic Capital” refers to any, or all, Nordic Capital branded funds and vehicles and associated entities. The general partners of Nordic Capital’s funds and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which is referred to as “Nordic Capital Advisors”.