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Storskogen, a Swedish privately owned company, has made its first acquisition in the UK, acquiring SGS Engineering – the leading e-commerce retailer of power tools and related products in the UK. The transaction was completed in April 2021.
HW Fisher LLP, a top 25 accountancy firm, undertook financial due diligence on SGS Engineering and advised on the share purchase agreement.
Helen James, corporate finance partner, HW Fisher, commented “It was a pleasure to assist Storskogen with their first UK acquisition. Storskogen has built a unique business model in Scandinavia, which offers great opportunities to business owners looking to sell. We look forward to helping them expand this model in the UK.”
SGS Engineering was founded in 2003 and has since grown to become the leading UK online retailer of products such as power tools, air compressors, gas struts, tool chests, generators, and a variety of garden tools. The products are primarily sold through the sgs-engineering.com website, and distribution is managed through the newly built warehouse in Derby, England. The company has a workforce of about 50 employees and founder Andrew Wyatt will remain as CEO and shareholder.
Storskogen’s mission is to acquire and operate well-managed and profitable companies with leading positions in their respective markets. As of the end of 2020, Storskogen was made up of 58 business units with about 3,500 employees. All business units are run in a decentralised and entrepreneurial fashion.
SGS Engineering is Storskogen’s 21st acquisition in 2021. The acquisition of SGS Engineering is a milestone for Storskogen, according to Philip Löfgren, CEO, UK. “The acquisition of SGS Engineering is an important step for Storskogen, as it is our first UK company. We are committed to building a strong presence in the UK market and are constantly evaluating new UK investment opportunities across all industries. We encourage company sellers and vendor advisers to contact us at Storskogen if they are looking for a long-term home for their business. We enjoyed working with the team at HW Fisher on our first transaction, and appreciated their responsiveness and detailed, yet commercial approach, and look forward to working together on more acquisitions in future.”