Ever since this magazine was founded, we have regularly monitored changes in the industries we write about. It is often about new products, methods, projects and more. But very often it is also about different types of acquisitions among contractors, manufacturers and various suppliers. During this year, such a change has occurred in Sweden that has led to the redrawing of the market map.

‘To create a solid chain that delivers what customers need’

In September, we published a press release stating that the company Puvac had acquired Jack Midhage Diamond Tools AB and Jerneviken Maskin AB. Recently PDi received another press release that Puvac is also acquiring the companies Levanto Diamond Tools AB in Sweden and Levanto Norge AS.

This is really an interesting development and our assessment was that there is a need for a more in-depth article about what is happening. The best source was to interview Torbjörn Bengtsson who is the key person behind the acquisitions.

What is the idea behind Puvac's acquisition journey?

“First, I want to clarify that Puvac, which may be a relatively unknown company name, will not be the name to the outside world or a brand name. Puvac has been around for a long time but is the parent company in this purchase. It is the brands Midhage, Jerneviken and now also Levanto that will continue to be visible to the outside world. It is important to emphasise this. The idea is, in short, is to create a solid chain of companies with machines and tools that will cover a wide range of uses in drilling, demolition, construction and rental. We will further strengthen our brands and be the user's absolute best choice in product range, quality and service. At the moment, it is the Swedish market we focus on and of course the Norwegian with Levanto Norge AS. But our aim is to work all over Scandinavia in the long run,” says Torbjörn Bengtsson.

The acquired companies all have a wide range of agency products or foreign products that they represent and sell, but perhaps not so many own products. What does your strategy look like with agency products and perhaps even more, your own products?

“We have no plans to develop and manufacture our own products more than the products we already manufacture, which are diamond tools from both Midhage and Jerneviken, as well as various aids and accessories such as drill stands, ‘Jonex’ air purifiers, floor saws and other aids. It is our already wide range of agency products that we want to continue to strengthen and broaden. We will have more agency products. It is already public that we sell Von Arx programs of concrete milling machines. We will also launch the manufacturer Superabrasive's complete range of machines for grinding and polishing concrete floors, including their own range of industrial vacuum cleaners, called ‘Lavina’. This will be launched at the Swedish trade shows Nordbygg and Demcon next year. Then we will continue to connect with more agency products over time. Vacuum cleaners and air purifiers are of course a product range that we will invest in and that is close at hand.” It is worth mentioning in this context is that Torbjörn Bengtsson was the founder and owner of the manufacturer Pullman Ermator that was acquired by Husqvarna Construction Products some years ago.

When you acquire several similar companies, there is usually some overlap both in terms of products and personnel. How do you view that situation with Midhage, Jerneviken and Levanto?

“On the personnel side, I do not directly see the risk of overlap here, we rather need to increase the staff. We will complement the organisation at all levels. Both the sales and purchasing side need to be strengthened and on management and support we have the co-owners Kim Christiansson and Stefan Bergsten, who come with knowledge and experience. Stefan will be our vice president and marketing manager and Kim sales manager. In addition, we have recruited Benny Aronsson, who will be acting CEO during the mergers and start-ups. Benny joins on the 1 January 2022 when his current assignment is completed. Peter Petersson and Peter Logan from Jack Midhage AB remain also part owners the Midhage Company.

“We will also employ two or three more salespeople, for rental products in Central Sweden and another salesperson in the Mälardalen area. I myself will be a working chairman of the board. In terms of product, I do not currently see that there is a problem with overlap in our product groups, but as I said, the goal is to increase the product range. We want to be comprehensive and have all the machines and tools that our customers such as demolition companies, building and construction contractors and machine rental companies, demand; for example concrete cutters. We already have many strong brands in the range such as our own diamond tools, our own drill stands, our own air purifiers in Jonex, our own floor saws and the agency products from Zenesis, Cedima, Otto Baier, AGP, Weka, Dr Bender and many more. With the acquisition of Levanto, we also acquired the sales rights for Pentruder's entire range of wall and wire saws, as well as drilling systems and drilling machines from Japanese company Shibuya.

“Another important change is that we will merge Midhage's and Jerneviken's operations in Gothenburg and move Midhage's office in Gothenburg to Jerneviken's premises in Hisings Backa, which will be headquartered in Gothenburg. These are good premises and which we own. However, some rebuilding and renovation will be carried out. We hope to be ready by midsummer 2022. We are also merging the service centres in Stockholm. Midhage's head office and warehouse in Båstad remain unchanged. Our products and proximity to the customer are very important in this new company constellation, but just as important is to maintain a high level of service towards the customer. In Sweden, we will have four strong service centres that help customers around the clock,” says Torbjörn.

Can you reveal something about your goals in terms of sales for the next few years and what the strategy will look like?

“We will continue on the path that the companies we have acquired already have. But we want to increase the level of service, broaden the product range and also our customer base. We will be a total supplier in demolition, concrete cutting, construction and rental. The goal is for approximately half of the turnover to come from rental and the remaining 50% coming from concrete cutting, demolition and construction,” says Torbjörn.

How much do you sell today and how fast and how much do you want to increase?

“Today, we have a total turnover of around €12M with all the companies we have acquired. Within a couple of years, our goal is to increase to around at least €20M in Scandinavia,” says Torbjörn.

There is some speculation about the collaboration with Von Arx, which has been owned and run by Fredrik Åkermark for a couple of years now. Fredrik had a key role with you in the company Pullman Ermator. What is the connection between you and Fredrik in this new constellation?

“Fredrik and I have always worked very well together, and the collaboration is still very good, and we are good friends, but there is no ownership relationship. Fredrik runs Von Arx and I, with my colleagues, the business in Puvac with the subsidiaries. End of discussion!” says Torbjörn, who adds,  “The ownership constellation in our new business contains several co owners with me, Stefan Bergsten, Kim Christiansson, Peter Petersson and Peter Logan.”

With what you have said, is there any reason to believe that we will hear more about Puvac's acquisition journey over time?

“Absolutely, it has only just begun,” concludes Torbjörn Bengtsson.