Permobil
Investment summary
Fund: Fund V
Investment theme: Growth acceleration and Operational
improvement
Investment date: January 2006
Exit date: March 2013
Business description
Permobil is a world leader in Advanced Rehab
Powered Wheelchairs (PWC) for the top end of the complex
rehabilitation market. Permobil's users are patients with severe
mobility disabilities who require complex rehab
functionality.
Founded as a family business in Timrå in the
1960s, Permobil operated across four continents and employed
approximately 700 people in March 2013 when Nordic Capital Fund V
divested the company.
Background
The company's reputation has been built on
innovation centered on an entrepreneurial spirit and genuine desire
to 'make a difference' in the lives of its users. However, at a
point in time these attributes were not enough to fuel the
company's financial growth and global expansion. So after decades
of being run as a family business Permobil realized they would need
to bring in an external owner to succeed in these
efforts.
In 2006, Nordic Capital (Fund V) acquired
Permobil from the family of the founder Per Uddén, members of the
corporate management, and the foundation Teknisk Hjälp åt
Handikappade, with the purpose of giving Permobil the support and
resources to focus on product development, R&D projects and
international expansion.
Over the next seven years Nordic Capital
helped the company evolve from a family run business to a global
market leader in the advanced top end segment of the PWC
market.
Investment rationale
Permobil had a number of attractive investment
characteristics; being seen as a pacesetting category leader,
having strong customer loyalty and a dedicated company
culture.
Additionally, Permobil had a strong market
share within an attractive industry. At the time of Nordic
Capital's acquisition it was evident that changing certain
operational processes as well as conducting specific business
measures would allow Permobil to scale and expand in a way that
before had not been possible.
Value added
By applying an operational improvement
strategy coupled with a focus on strong organic growth, Nordic
Capital supported Permobil in investing in product development as
well expanding into new markets.
Under Nordic Capital's ownership Permobil
professionalised its operating processes, adopted best in class
business practices and elevated its competence with a top tier
management team. Permobil also
strengthened the competitive position through higher degree
of Low-Cost-Country sourcing and established local production
in the most important US market, to cater for the increased demand
in that market.
Under the ownership of Nordic Capital between
2006 and 2013 Permobil almost doubled its sales and established a
position as the global leader in the complex rehabilitation power
wheelchair industry.
Exit
In March 2013, Permobil was sold to the
Swedish investment company Investor AB. Founded by the Wallenberg
family over a hundred years ago, Investor is a leading owner of
high quality Nordic-based international
companies.
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