Flexenclosure
The company today
Lidköping-based Flexenclosure has developed a base station solution for mobile telecom networks that can run on renewable power sources such as solar, wind, fuel cells and biofuels. Its environmentally sustainable and cost-effective systems reduce operating costs for base stations compared to conventional solutions, while at the same time cutting carbon dioxide emissions.
Flexenclosure's customers include telecom operators and contracting companies. Developing countries looking to expand their mobile telecom networks despite inadequate power supplies are a major market.
Industrifonden became an owner in the fall of 2007, investing SEK 8 million. The purpose of Flexenclosure's share issue totaling SEK 12 million was to provide the resources to accelerate the expansion of its renewable energy solutions. The current principal owner, Pegroco Invest, and the company's management also participated in the new issue.
- "What's unique about Flexenclosure's system solutions is that they are both environmentally sustainable and cost-effective," said Tore Tolke, Investment Manager at Industrifonden. "They offer operators significantly lower operating costs for base stations than conventional solutions. The demand for mobile solutions is growing, which is improving Flexenclosure's opportunities."
Background
Flexenclosure has been an independent company since 2006, when it was spun off from Pharmadule Emtunga, which supplies mobile hospitals and modular living quarters for the oil and gas industry. After Pharmadule Emtunga chose to focus on its core business, Pegroco and the company's management acquired the business in 2006 and established Flexenclosure AB.
What did Industrifonden offer?
Industrifonden acts as a long-term, financially stable owner that can offer emerging companies expertise in business development. It also gives these companies legitimacy in major negotiations as well as a valuable industrial network.
Next step
Flexenclosure continues to develop products based on renewable energy sources. Its organization is being expanded and strengthened in design and production as well as sales, where a presence in the market is needed in order to quickly satisfy customer demand.
Future outlook
Within a five-year period the company's sales will more than triple to SEK 300-500 million. Growth is mainly expected to be organic. Minor acquisitions may also be needed to strengthen the company's competence in certain areas.