During the period of Norvestor´s ownership between 2012 and 2016, Sortera consolidated its position as a leading provider of building waste collection and sorting. This was achieved by building a new sorting facility, expanding the sales footprint and introducing new services. In 2015, Norvestor assisted Sortera in the acquisitions of MELAB and Åkerisäcken, which delivered significant cost synergies to its business. In April 2016, Norvestor exited Sortera to a financial buyer.
Stockholm-based Sortera Skandinavien Holding AB provided building waste collection and sorting, with a focus on heavy-duty builder bags. As a full-service supplier within the building waste collection space, Sortera also offered traditional container rental and other related services. At the time of Norvestor’s 2012 investment in Sortera, the business offered a strong entry point into the fast-growing builder bag niche amidst a positive outlook for the Nordic building and renovation market. Sortera also offered a successful customer-oriented niche strategy, bolstered by a young, competent and ambitious management team. Sortera promised an attractive growth platform, with geographical and service expansion opportunities and untapped potential in the Stockholm area.
Challenge and Our Approach
When Norvestor invested in May 2012, Sortera enjoyed a strong position in the quickly growing builder bag niche, but the waste collection and sorting company was little known outside the Stockholm area. Sortera was well-positioned to grow both in Stockholm and in the Nordics, but needed to expand its sales presence to new locations as well as expand its sorting capabilities to meet future demand. Working together, Norvestor and the company expanded Sortera into the key collection markets of Oslo and Gothenburg and invested SEK 40 million into a new sorting facility and sales office on the north side of Stockholm to support the strong growth there. To increase Sortera’s presence within its market, the company grew both the sales force and the number of retailers offering the Sortera’s products and services. Norvestor also enabled Sortera to grow through acquisitions, by supporting the company through two acquisitions in 2015; MELAB in Q1 and Åkerisäcken in Q4.
Sortera at Exit
Norvestor´s expertise and resources were instrumental in executing Sortera’s organic and acquisitive growth strategy. From a financial perspective, Sortera nearly tripled revenues between 2012 and 2016, while increasing EBITDA more than six-fold, from SEK 13 million in 2012 to SEK 85 million in 2016E at time of exit. Norvestor left Sortera well-positioned for future success and growth when it exited to a financial buyer in April 2016.
«Norvestor has been an important partner in defining and supporting Sortera in the execution of our growth strategy; focusing on environmental solutions, and offering waste solutions to construction companies with increased flexibility, high reliability, short lead times, excellent quality and great customer support.»
Henrik Westöö, co-founder and CEO of Sortera.