mynth
05/2010

HG CAPITAL takes majority stake in FRÖSUNDA

SWEDEN Health Providers / Healthcare Facilities EV SEK 1–10bn

Context

Pan-European private equity firm HgCapital has entered into a definitive agreement to acquire Frösunda LSS AB from Danish private equity sponsor Polaris. Executed by HgCapital’s dedicated healthcare sector team (marking its second investment in the space within a six-month period) the transaction remains subject to customary regulatory clearances. This buyout firmly aligns with the sponsor’s core strategy of targeting premium Nordic platforms that are underpinned by highly favorable macro-demographic tailwinds and a persistent structural shift toward the outsourcing of care services. HgCapital’s primary mandate is to cement Frösunda’s position as the undisputed leader in the Swedish specialist care market, a highly defensive segment expanding at over 10% annually. Partnering closely with the management team led by CEO Goran Fredriksson, the sponsor intends to execute an aggressive, hybrid value-creation playbook. This strategy will focus on accelerating organic top-line momentum, driving meaningful margin expansion through economies of scale, and deploying a rigorous buy-and-build M&A program. Management has already identified over 30 target segments to broaden the platform’s footprint into highly adjacent, specialized markets, including psychiatry, special schools, and high-acuity autistic spectrum disorders (ASD).

FRÖSUNDA, which reported an EBITDA margin of [members only] in 2010, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average currently observed in the Healthcare & Pharma sector (14.3x).

-> Deep-dive in Healthcare & Pharma market trends

Target

Frösunda LSS AB is a Swedish company specializing in care for people with disabilities, originally a subsidiary of the healthcare services cooperative Praktikertjänst, and became an independent business in 2007 after being acquired by Polaris, a Danish private equity firm. Frösunda provides personal assistance and housing services for adults and children with special needs, as well as coaching and schools services. The company has 41 offices across Sweden and cares for 1,600 users. Frösunda's business model is based on providing high-quality care services, with a diversified range of services and an experienced management team.

Ent. Value

SEK 1–10bn

Equity Value

[members only]

Multiples

EV / Revenue

below 1.5x

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (SEK)

Year
Rev
EBITDA
EBIT
2010
SEK 1–10bn
[members only]
[members only]
2009
SEK 1–10bn
[members only]
[members only]

Other operations with FRÖSUNDA

Other operations with FRÖSUNDA

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
03/2018THE ADOLFSEN GROUPFRÖSUNDASWEDENHealthcare Facilities

REFERENCES

Valuation range: EV SEK 1–10bn

Revenue range: SEK 1–10bn

EV/Revenue range: below 1.5x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of FRÖSUNDA by HG CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: frösunda

Acquirer: hg capital