Storskogen UK acquires Tornado Group
Storskogen continues its international expansion with its third acquisition in UK after taking a qualified majority stake in Tornado Group Ltd. Tornado Group is a leading provider of premium branded animal fencing products, with an annual revenue and EBIT of approximately GBP 34.7m and GBP 5.2m, respectively for the last twelve month period ended on 30 November 2021.
Since its establishment in 1969, Tornado has gone from its humble beginnings to become a name synonymous with quality in animal fence manufacturing. The development has been underpinned by the company’s innovative approach which has seen the company become a pioneer within the industry, consistently developing new products and capabilities. With its dedication to deliver premium products, Tornado has built a loyal customer base, some of which have been with the Company for decades. The UK market represents the Company’s largest at 70 percent, however the company has considerable and growing export sales, in Ireland and the rest of Europe and sees the US as a significant growth opportunity.
Tornado has also amassed a wide range of international suppliers, who share the company’s commitment to delivering high quality products. The Company invests heavily in its loyal and dedicated workforce, approximately 100 employees, and is accredited as an IIP Gold Employer.
The existing management team will remain in the business led by Managing Director Kenny Campbell and supported by Director of Operations Jonathan Miller and Financial Director Lynn Hall who will remain in their existing senior roles within the company.
“When I joined Tornado in 1976 it was a small fence contracting business based in Scotland. There have been many changes since then as it grew into the market leader of agri fencing in the UK with significant export sales. I am delighted to be partnering with Storskogen as they clearly share our culture, values and long-term approach; we are ambitious for further success but only when it is achieved in a sustainable and ethical way. I am proud of what we have achieved so far and excited about the future as part of the Storskogen group”, said Kenny Campbell, Managing Director of Tornado.
Tornado will join the business area Industry headed by Fredrik Bergegård.
“We are extremely impressed with Tornado, in particular their long history and tradition as well as their capacity to innovate and deliver premium products. Tornado and its fantastic employees is a perfect partner for Storskogen, and we look forward to supporting their expansion into new markets”, said Fredrik Bergegård, EVP and Head of Business Area, Industry.
Philip Lofgren, in charge of Storskogen’s operations in the UK, believes the UK has an integral role to play in Storskogen’s international expansion plans, and Tornado highlights the continued success and another step towards realising these objectives.
“Tornado is our third investment in the UK following the acquisitions of SGS Engineering in Q2 2021 and Julian Bowen in Q4 2021 and is our first acquisition in the Industry business area. Being a market leader in its home UK market, Tornado is exceptionally well positioned to successively expand into new markets, primarily within Europe and the US. We are excited to partner with the existing Tornado management team to develop these capabilities further”, said Philip Lofgren, CEO of Storskogen UK.
The acquisition was signed and completed on 14 January 2022 and is expected to have a marginally positive effect on Storskogen's earnings per share in the current year.