Formica Capital, a Swedish investment company, has acquired Rototec Group, Europe’s largest provider of geo-energy solutions from Intera Partners.
Formica Capital, was founded in 2018 by the Olsson Eriksson family and is an investment company with a long-term investment perspective, driving performance under a strong sustainability agenda in both investment selection as well as in its active ownership model.
Rototec is their fourth acquisition in the field of sustainable energy. Their investment portfolio includes, among others, EcoKraft, a solar cell company, and Sierra Energy, a developer of a technology that turns landfill into energy and Swedish Algae Factory, increasing energy efficiency of solar panels with silica algae.
In the recent years, Rototec, established in 2007, has been growing rapidly and profitably through a combination of entrepreneurship and organic growth as well as through active M&A strategy.
“We have been able to grow Rototec since 2014 to a leading renewable energy business in the Nordics. I would like to thank Rototec’s management for their excellent work and commitment in developing the company to where it is today. At this stage Formica Capital is a very good owner to take Rototec to the next growth phase,” says Juhana Kallio, Partner at Intera.
Rototec is the market leader in geo-energy solutions for mid-sized and large properties, managing Europe’s largest drilling equipment fleet for geo-energy in Finland, Sweden, and Norway. Rototec offers all the services from consulting and design of geo-energy systems to their implementation.
Rototec has drilled a total of 58,000 geo-energy wells by date with an estimated saving of 275,000 tonnes of CO2, equivalent to the emissions of the whole of Åland in Finland, or Varberg in Sweden or Porsgrunn in Norway in one year.
“In Rototec, we see a company that has succeeded in combining deep sector competence, operational efficiency and leadership skills to become the leading provider in a very important industry and we see great potential in continued growth. We hope to contribute to Rototec’s continued journey with our experience and skills to grow both geographically, through M&A and through developing new business models as well as to help geoenergy meet its full potential as a climate saver within and beyond the Nordics,” says Teresa Enander, COO, Formica Capital.
In 2020, Rototec had revenues of EUR 51 million and 100 employees. The market outlook for geo-energy looks very promising with increased climate targets. Rototec’s ambition is to further consolidate the Nordic market, continue to develop new business models and expand beyond the Nordics.
“With Formica, we get a long-term partner whose experience in building strong companies and expertise in the energy sector will be a great strength for us. Their strong belief in sustainable energy systems combined with their focus on impact and responsibility is completely in line with our values and our view of the future. We see great potential in the collaboration to continue developing Rototec strongly into the future,” says Alexej von Bagh, CEO, Rototec Group.