The limited company Industrivärden was registered on February 21, 1944. The name, which means “industrial values,” was chosen to signify the major value in the industrial companies that were transferred to this company that was newly formed by Handelsbanken. In the years that have passed, operations have been successfully adapted to prevailing developments in the external business environment, and many changes have taken place. The ability to develop operations over time has enabled Industrivärden to deliver competitive returns and has laid a solid foundation for the future.
Industrivärden is founded in 1944 by Handelsbanken to manage the shareholdings taken over by the bank during the economic crisis in the 1920s and ’30s. The equities portfolio consists of eight companies active primarily in forestry, power generation, textiles, steel and telecommunications (through Ericsson). In 1945 the Company is listed on the stock exchange and its shares are distributed to Handelsbanken’s shareholders.
Demand for industrial products and input components rises sharply in post war Europe. Against this background, Industrivärden strengthens its ownership positions in attractive portfolio companies and carries out new acquisitions in sectors such as forest products, gas and steel. SCA becomes a new portfolio company.
Continued strong growth and extensive residential construction lead to investments in engineering and construction companies. Even though the five largest holdings account for most of the portfolio value, the equities portfolio becomes differentiated to include holdings in more than 60 companies and a number of wholly owned subsidiaries.
Falling productivity and growing international competition put demands on structural measures and stronger competitiveness. Industrivärden formulates a clear investment strategy with the ambition to exercise its ownership in a more structured way. Numerous, large structural and equity deals are carried out. The Company begins to build up a holding in Handelsbanken.
The active ownership model is developed, and in pace with this the equities portfolio is strongly concentrated at the same time that the unlisted holdings are gathered into a wholly owned industrial and real estate business.
Consolidation of the wholly owned businesses continues, culminating in the formation of the industrial company Inductus, the industrial trading company Indutrade, and the property company Fundament. The equities portfolio is changed with the divestment of the holdings in PLM and AGA, new purchases are made in Sandvik, and other, and the holding in Skanska is doubled.
A globalized capital market and mounting competition drive towards specialization. Industrivärden focuses on its area of strength: active ownership in large, listed companies. The portfolio is refined, whereby the remaining subsidiaries are sold. Industrivärden’s ownership strategy is further refined.
At the start of the decade, Industrivärden becomes the largest shareholder in Volvo. Many industrial companies continue to struggle with the aftereffects of the financial crisis of the 2000s, and focus is directed in particular on various measures in existing portfolio companies. In February 2016, Industrivärden unveils a refined strategy for active ownership, with greater focus on existing portfolio companies and a stronger financial position. SCA is split into hygiene products company Essity and forest industry company SCA.
Sandvik distributes its materials technology business to shareholders in the form of listed company Alleima. As a leading holding company, Industrivärden works long-term to develop and create value in its portfolio companies. Through continuous investment in its portfolio companies, enhanced returns are achieved through active ownership. The established business model serves as a solid foundation for generating attractive returns at balanced risk.