Founded in 1906. Listed since 1976.

120 years of structural discipline

For 120 years, Bergman & Beving has operated through wars, crises, structural separations, and five decades of public ownership. This is the story of the principles that have shaped the company and that endure to this day.

Why 120 years matter

Longevity only matters if the structure survives. A long history does not guarantee relevance; it demonstrates resilience.

Since 1906, Bergman & Beving has operated through two world wars, the Kreuger crash, the Swedish banking crisis of the 1990s, the IT bubble, the 2008 financial crisis, and the zero-interest-rate era. Through every upheaval, the same core principles have endured: decentralised accountability, capital efficiency, and long-term ownership.

Decisions That Shaped the Model

1906

A technical trading company is born in industrial Sweden

1936

Incorporation and the origins of autonomous business units

1976

The Stockholm Stock Exchange brings transparency and discipline

Late 1970s–1980s

A performance principle is formalised during turbulent times

1967–2000

Three decades of disciplined portfolio building

2001

Complexity resolved through division into independent listed companies

2008

The financial crisis revealed the cost of centralisation

2012–2017

Strategic correction and the restoration of decentralised governance

2021–Present

Sharpened acquisition criteria and a new era of disciplined growth

Listed since 1976

Five Decades of Public Discipline

Since its listing in 1976, Bergman & Beving has operated under continuous market scrutiny for nearly 50 years. Public ownership did not change the business model; it clarified it. Over this period, the share has risen by more than 10,000 percent, while return thresholds have remained consistent through:

Inflationary environments

Periods characterised by rising input costs, shifting pricing dynamics, and monetary tightening.

Credit expansions

Phases of ample liquidity, rising asset prices, and increased lending activity.

Financial crises

Market disruptions marked by constrained liquidity, declining demand, and financial instability.

Low-rate regimes

Environments shaped by expansionary monetary policy and historically low financing costs.

Average profit growth has been approximately 15 percent per year, and with the compounding effect, this means value doubles roughly every five years. This reflects structural discipline rather than episodic acceleration.

Spin-Offs & Value Creation

Divestments are not a retreat. They are capital allocation in a powerful form.

Since 2001, six independent listed companies have emerged from the original structure: Addtech, Lagercrantz Group, AddLife, Alligo, Momentum Group – and Bergman & Beving itself. Today, their combined market capitalisation exceeds SEK 180 billion. A single share purchased for SEK 37 in 2001 is today worth approximately SEK 9,900 across all six companies – a compound annual growth rate of 25 per cent. Eleven active listed-company CEOs have been shaped within the B&B sphere, earning the group its reputation as the CEO factory of the stock exchange.

Investment philosophy

We will continue to be consistent.

"P/WC was defined decades ago. We still use it."

"When interest rates were close to zero, many wanted to replicate the model. But the processes were not in place. Leadership in this context means preserving structural filters across cycles."

Magnus Söderlind, CEO

The doctrine today

Expansion capital depends on return on working capital

Growth at Bergman & Beving is not an objective in itself but a consequence of proven profitability. Capital allocation is governed by the Focus Model: companies with P/WC above 45 percent are allocated capital for growth and acquisitions, those between 25 and 45 percent must first improve margins and capital efficiency, and those below 25 percent receive no growth capital and focus exclusively on profitability. This threshold logic, introduced in the 1980s, ensures that capital is consistently directed to where it creates the most value.

Acquisition targets must demonstrate cycle resilience

Acquisitions are a central driver of the group’s growth, but the process is deliberately selective. Approximately 30 potential candidates are evaluated annually, in-depth review is conducted on eight to ten, and roughly six acquisitions are completed. One in five companies reviewed is ultimately acquired. Target companies must demonstrate sustainable EBITA margins above 15 percent, P/WC above 45 percent, and leading positions in niche markets with resilience across economic cycles. By prioritising cycle resilience, the group builds a portfolio designed to withstand changing market conditions.

Leadership fit within a decentralised model is essential

In a group with more than 35 independent companies and only ten employees at head office, all operational responsibility rests with local leaders. Bergman & Beving seeks companies where entrepreneurial managers are committed to developing their businesses over the long term. They are given significant operational latitude, with responsibility for profit, balance sheet, and cash flow, while being supported by the group’s Business School, internal benchmarking, and the B&B Toolbox. This combination of freedom and framework has shaped a culture that consistently produces outstanding business leaders.

Capital discipline is applied symmetrically across cycles

Capital discipline applies regardless of the economic climate. In strong markets, it prevents overexpansion and overpaying for acquisitions, as when the group refrained from acquisitions in Scandinavia during the zero-interest-rate period when prices had been driven up. In downturns, it enables the group to act on attractive opportunities from a position of balance sheet strength. Return thresholds have not been relaxed once since the listing in 1976. The growth pace may vary, but discipline regarding returns does not.

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Disclaimer

Historical financial performance and market value references are provided for illustrative purposes only. Past performance does not guarantee future results. All financial figures are based on publicly available information at the time of publication.