mynth
05/2010

HG CAPITAL takes majority stake in FRÖSUNDA

SWEDEN Health Providers / Healthcare Facilities EV 1b - 4b SEK

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 LOGIN in 2010, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Healthcare & Pharma sector (14.4x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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

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Equity Value

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Multiples

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EV / EBITDA

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EV / EBIT

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Historical Financials (SEK)

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2010
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2009
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Other operations with FRÖSUNDA

List of similar M&A transactions (Date, Acquirer, Target, Country, Sector, Deal Context)
DateAcquirerTargetCountrySectorDeal Context
03/2018THE ADOLFSEN GROUPFRÖSUNDASWEDENHealth Providers

Pan-European private equity firm Hg has successfully completed the divestiture of its majority equity stake in Swedish care provider Frösunda Omsorg AB to Norway-based investment firm The Adolfsen Group. Executed through the holding company Brado—an investment vehicle owned by brothers Kristian and Roger Adolfsen—the transaction concludes a highly successful eight-year holding period for the sponsor. Throughout the targeted sale process, Hg was exclusively advised by investment bank Carnegie, acting as sole financial advisor. For the acquirer, the buyout represents a strategic opportunity to further consolidate its footprint and deepen its portfolio exposure within the highly resilient Nordic care services sector. For Frösunda, partnering with a long-term, specialized investment group provides the management team with the necessary backing to continue scaling the corporate platform, while remaining fully focused on its core operational mission: delivering premium, critical specialist care to its customers.

REFERENCES

Valuation range: EV 1b - 4b SEK

Revenue range: 1b - 3b SEK

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Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: frösunda

Acquirer: hg capital