Industrivärden AB history, profile and corporate video
Industrivärden AB is an investment company headquartered in Stockholm, Sweden. It focuses on long-term value-creating asset management through active ownership.
The company’s equities portfolio comprises investments in Sandvik, Volvo, Svenska Handelsbanken, Essity, SCA, Ericsson, and Skanska.
THE HOLDINGS
HISTORY
The investment company Industrivärden was created in 1944 as a subsidiary of Handelsbanken. The name “Industrivärden” means “industrial values”, and was chosen in honor of the highly valued holdings in industrial companies that were being transferred to the new company.
The fundamental assets were holdings in eight companies: forestry company Bergvik och Ala, hydropower company Hammarforsen (both of which were hived off from SCA when the parent company was reconstructed), steel company Fagersta, Telefonaktiebolaget L M Ericsson, textiles company Almedahl-Dalsjöfors, textiles company Kilsund and portfolio management companies AB Hindus and AB Regia.
In 1945, Industrivärden was listed on the Stockholm Stock Exchange.
In 1957, Industrivärden acquired shareholdings in AGA AB and Svenska Metallverken.
In 1958, the company acquired shares in Borås Väveri, expanding in the textile industry.
In 1959, Industrivärden expanded its investment in the construction industry through a non-cash issue in the cement manufacturer Gullhögens Bruk.
In 1960, the company invested in packaging specialist Plåtmanufaktur (PLM).
In 1961, the company added a shareholding in ventilation and tool specialist AB Bahco.
In 1962, Handelsbanken and Industrivärden formed Investment AB Promotion.
In the 1960s, Industrivärden continued to diversify its holdings portfolio, with companies that had already been included in the portfolio of its predecessor, AB Handion, in the 1920s. These companies now became regular holdings, such as A-betong, Boliden and Husqvarna. Industrivärden also bought stock in its founder company Handelsbanken.
John Mattson Byggnads AB (subsequently JM) was acquired and became a new subsidiary. Industrivärden also acquired the building materials company Olsson & Rosenlund and merged it with other building materials companies in its portfolio. The newly Olsson & Rosenlund was then merged with John Mattson and Gullfiber to form the new JIMOR group (named after the initial and middle letters of the companies involved).
Other additions to the portfolio in the 1960s were Facit AB, Försäkrings AB Skandia, Pripps Bryggerier, Turitz and Tändsticksaktiebolaget. Through a new subsidiary, AB Delus, stock was also purchased in IBM, General Motors and Gunnebo Bruk.
In the 1970s, new holdings were added to the company’s portfolio, including mining giant Atlas Copco, automotive manufacturer Volvo, pharma company Astra, and Alfa Laval, which had been in Handion’s portfolio back in 1924.
In the late 1970s, Industrivärden sold its stock in Fagersta to Kinnevik. This was replaced by a shareholding in Sandvik.
In the 1990s, the steel companies Sandvik AB and SSAB were added as important holdings in the company’s portfolio.
In the late 1990s, Industrivärden acquired shares in the industrial group Sandvik from Skanska. The company soon doubled its holding in Skanska and became the largest shareholder of the construction company.
In 1997, one of the remaining industrial companies was sold, along with the real estate company Fundament.
At the start of the 2000s, Industrivärden’s equities portfolio consisted of large shareholdings in six listed companies (Ericsson, Sandvik, Skanska, Handelsbanken, SSAB, and SCA), a medium-term equities portfolio (including Skandia and Lundbeck A/S), two remaining wholly-owned industrial companies (Besam and Isaberg Rapid) and the industrial trading company Indutrade.
In the mid-2000s, Industrivärden increased its shareholdings in Handelsbanken, Sandvik, and Volvo.
In 2005, Industrivärden listed Indutrade, remaining the biggest shareholder.
At the end of the 2000s, Industrivärden was Skandia’s second-largest shareholder, but the holding was sold eventually. The holding in Danish pharmaceutical company Lundbeck and the two remaining industrial companies (Besam and Isaberg Rapid) were also sold.
During the decade, investments were also made in medium-sized listed companies Össur (medical devices), Munters (air handling) and Höganäs (metal powder).
In 2021, the holding in SSAB was sold.
With more than 15 employees, Industrivärden AB is considered one of the Largest Public Companies in the World, according to Forbes.
*Information from Forbes.com, Wikipedia.org, and www.industrivarden.se/en.