Investment strategy

Schouw & Co. has a dual-level strategic approach to investments. One set of criteria is used for bolt-on acquisitions to existing portfolio businesses, and one set is used for a potential new ‘leg’, i.e. a platform investment without synergies or matches to an existing business.

During 2006 to 2013 new platforms have not been actively on the agenda. Subsequently, the way was paved for the potential involvement of new businesses, however, capacity investments and bolt-on acquisitions to the existing businesses have always remained the highest priority.

Overall, the following principles have been defined:

  • Schouw & Co. has a long-term investment strategy and remains open towards attractive acquisitions and appropriate divestments
  • We do not have pre-defined exit strategies for the investments made
  • We strive to own and develop our businesses as long as we are the best owner
  • We provide clear goals for returns and continuous earnings

The structure of Schouw & Co. entails that a realistic span of control is 5-7 businesses. Hence, it is therefore important that an addition to the portfolio is constituted by the correct business with a strong and long-term potential.

It is also important to emphasise that a deal flow is not an object in itself. Only if Schouw & Co. is no longer the best owner of a business, we should sell it.

Since 2014 two businesses have been added to the portfolio and one has been divested. Furthermore, several bolt-on acquisitions and capacity investments have been made, cf. the below.  

Portfolio expansion:

  • March 2017: Schouw & Co. acquires majority of Borg Automotive (news link)
  • January 2016: Schouw & Co. acquires GPV (news link)

Bolt-on acquisitions:

  • October 2018: GPV acquires Swiss CCS Group (news link)
  • February 2018: Fibertex Nonwovens acquires all aktivities in Brazilian DUCI (news link)
  • June 2017: BioMar acquires South American shrimp feed manufacturer (news link)
  • February 2017: GPV acquires BHE in Horsens, Denmark (news link)
  • November 2016: BioMar acquires factory in China (news link
  • August 2016: Hydra/Specma acquires Etola China (news link)
  • November 2015: Hydra-Grene acquires Swedish competitor Specma Group (news link)
  • April 2015: BioMar establishes joint venture with Chinese Tongwei (news link)
  • October 2014: Fibertex Personal Care acquires German Innowo Print (news link)
  • October 2014: Fibertex Nonwovens acquires American Non Woven Solutions (news link)
  • May 2014: BioMar establishes joint venture with Turkish Sagun Group

Capacity investments:

  • September 2017: GPV invests in new capacity extensions (news link)
  • August 2017: Fibertex Personal Care to begin print production in the US (news link)
  • March 2017: BioMar to build production plant in Australia (news link)
  • May 2016: GPV establishes production in Mexico (news link)
  • January 2016: Fibertex Personal Care etablishes production line in Malaysia (news link)
  • October 2015: Fibertex Nonwovens takes over Turkish Ribatek’s nonwovens activities (news link)
  • May 2014: BioMar invests i production line in Norway (news link)

Divestments:

  • November 2018: Schouw & Co. sells its ownership interest in Xergi (news link)
  • October 2016: Schouw & Co. sells its ownership interest in Kramp (news link)
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