Five Criteria That Guide Our M&A Decisions

“Finding the right companies is never only about numbers,” says Anders Hülse, CEO of Hultafors Group. “It starts with understanding whether a business fits our strategy, our way of working, and our ambition to build long‑term value.”

As consolidation accelerates within workwear, personal protective equipment, and tools, the ability to make the right acquisitions — not just more acquisitions — becomes increasingly critical.

A Disciplined Framework for M&A Decisions

While every transaction is unique, Hultafors Group applies a consistent framework when evaluating potential acquisitions. The objective is to reduce risk, ensure strategic alignment, and build a portfolio where each company strengthens the whole.

“Our role is to be highly selective,” Hülse explains. “We focus on companies where we understand the business, see clear value‑creation potential, and believe we can be a strong long‑term owner.”

The criteria that guide our M&A decisions can be summarised in five key areas:

1. A strong and defensible market position
   We look for companies with a well‑established brand, clear relevance for professional users, and a differentiated position within their segment.

2. Demonstrated quality and innovation capability
   Products must deliver real, proven value in demanding working environments and be supported by a strong track record in quality, innovation, and compliance.

3. Entrepreneurial leadership
   Management teams should demonstrate ownership, accountability, and a long‑term perspective — with a clear ambition to continue developing the business.

4. Cultural and values alignment
   Alignment on values such as responsibility, integrity, and trust is assessed early, as cultural mismatch is one of the most common sources of post‑acquisition risk.

5. Clear potential for international development
   Target companies should have realistic opportunities to scale beyond their home markets, supported by Hultafors Group’s international structure and industrial expertise.

Together, these criteria ensure that acquisitions contribute to sustainable value creation rather than short‑term expansion.

From Transaction to Long‑Term Value

Hultafors Group operates with a decentralised model, where acquired companies retain responsibility for their operations while benefiting from being part of a larger group.

“We do not acquire companies to change their core,” says Hülse. “Our task is to support growth, reduce risk, and create the conditions for long‑term development.”

By combining a clear M&A framework with patient ownership and operational independence, Hultafors Group aims to build a resilient portfolio of strong, entrepreneur‑driven companies.

“For us, successful M&A means making fewer but better decisions,” Hülse concludes. “When we get that right, we create value for the companies we acquire, for the Group, and for the long term.”