2001
2001 – Structural Separation
In 2001, Bergman & Beving was divided into three independent, publicly listed companies. The technology trading operations became Addtech, the electronics and communications business became Lagercrantz Group, and the remaining industrial and construction-related operations continued under the name Bergman & Beving. At the turn of the millennium, the group comprised approximately 200 companies and 3,000 employees with revenues of around SEK 9 billion. The business areas had grown so large and profitable that they had greater potential for value creation as focused, independent entities.
Historical Context
The breadth of the portfolio was creating challenges. The capital market struggled to value the conglomerate fairly, applying a holding discount rather than recognising the full potential of each business area. The IT bubble had also sharpened investor expectations regarding focus and transparency. From a shareholder value perspective, the separation would make the true worth of each entity more visible.
Structural Decision
Rather than pursuing forced synergies, the leadership chose to unlock value through separation. Each entity received its own board, its own management, and its own stock exchange listing. The shared heritage of decentralisation, P/WC discipline, and long-term ownership was carried forward independently by each company. After the separation was completed, Anders Börjesson stepped down as CEO and became chairman of both Addtech and Lagercrantz.
Consequence
The separation proved to be one of the most value-creating decisions in the company’s history. A single Bergman & Beving share purchased for SEK 37 in 2001 is today worth approximately SEK 9,900 across all six listed companies – representing a compound annual growth rate (CAGR) of 25 percent. Further spin-offs followed: Momentum Group in 2017, Alligo, and AddLife (from Addtech) in 2016. The combined market capitalisation of all six companies with origins in Bergman & Beving today exceeds SEK 180 billion.
What Endured
The 2001 separation established that structural separation is a legitimate and powerful form of value creation. The willingness to let go, and to recognise when a business is better served by independence, remains a distinguishing trait of Bergman & Beving’s philosophy.