Henning Strandås (left) and Per Ove Giske
BDO Deal Advisory acted as financial advisor to the owners of Teca Gruppen, which comprises Teca AS and TekniskBuerau AS.
- This has been an orderly and thorough process all the way. BDO has been closely involved throughout the entire process, providing us with valuable insight that enabled us to make sound and well-considered decisions at every stage,” says Christer Notland, the largest shareholder of Teca Gruppen.
As part of the process, BDO Deal Advisory also provided vendor assistance and prepared a financial factbook that was shared with interested parties. In addition, BDO’s lawfirm, BDO Advokater, in Sør-Vest assisted the owners with legal advice.
- Teca Gruppen represents everything we look for when entering a new geographic region, Konstel CEO Terje Myhre said in a separate press release.
BDO has observed a clear trend of increased consolidation in the construction and civil engineering market for several years, particularly within the technical trades. In the past six months, several new players have emerged, including Tekni, a platform created by four companies in collaboration with the PE firm Driv, and Rørco, established by Lynx Equity together with several companies in the HVAC sector.
- We’ve got extensive experience and deep insight into this industry, and we continue to see high transaction activity within the technical disciplines of the construction sector. There was strong interest in Teca Gruppen from both private equity and strategic players when we brought it to market, including players not yet established in the Norwegian market. We expect the consolidation trend within electrical, plumbing and ventilation to continue at full steam. A lot will happen in the next 3–5 years,” says Per Ove Giske, Partner and Head of Deal Advisory at BDO.
- We know that a lot of companies are facing or entering a generational shift in the coming years. This brings its own challenges, while it is also becoming increasingly difficult to remain a small player in a rapidly consolidating market, where strict requirements for reporting, certification and documentation continue to increase. More businesses will likely consider a sale and see advantages in becoming part of a larger group, says Henning Strandås, Director in Deal Advisory at BDO.
Teca Gruppen was established in 2022, but its roots go back to the 19th century. The group has grown significantly both organically and through acquisitions, and with its 340 employees, it has a turnover of NOK 570 million.
Konstel is Norway’s leading multi-local electrical group, comprising 36 companies and around 1,700 employees. With the acquisition of Teca Gruppen, the group surpasses a pro forma turnover of NOK 3 billion.