1967–2000
1967–2000 – Structured Acquisition
Beginning in the late 1960s, Bergman & Beving initiated a systematic acquisition programme. Over roughly three decades, more than 200 niche companies were acquired, building a portfolio spanning industrial tools, electronic components, technical instruments, and medical technology. The first step into electronics was taken in 1967 with the acquisition of Johan Lagercrantz, the embryo of what would become the separately listed Lagercrantz Group. The acquisition model was not opportunistic; it followed principles rooted in the company’s culture of decentralisation, technical specialisation, and capital discipline.
Historical Context
Industrial markets were fragmenting into increasingly specialised segments, and Nordic industry was evolving from large-scale manufacturing toward knowledge-intensive niches. The 1994 acquisition of Engros AB Ferro, which doubled revenues to over SEK 6 billion and lifted profit by 86 percent, was a landmark deal that brought Luna and ESSVE into the group. Both remain part of Bergman & Beving to this day. By 1996, earnings per share had risen by almost 20 percent annually since the IPO, creating substantial shareholder value.
Structural Decision
Acquisitions followed consistent principles: preserve operational autonomy, centralise capital discipline, avoid forced integration, and measure returns against working capital. The company did not seek to transform the businesses it acquired, instead it provided a framework of financial accountability and long-term ownership within which each business could develop on its own terms. This model is widely regarded as the origin of the Nordic serial acquirer model.
Consequence
The portfolio expanded without diluting accountability. Scale was achieved through the multiplication of autonomous, well-managed units rather than through centralisation. Under CEO Anders Börjesson, B&B delivered a total shareholder return of 25 percent annually from 1979 to 2001, a proof that disciplined, decentralised acquisition is a powerful engine of long-term value creation.
What Endured
Selective acquisition with preserved autonomy remains at the core of the operating model. The principles developed during this period – disciplined selection, decentralised governance, and return-based capital allocation – continue to guide every acquisition the group makes.