Höganäs will continue to build on its position as the world-leading producer of powder metals after a takeover bid by Lindéngruppen and Foundation Asset Management (FAM), owned by the Wallenberg Foundations, won the approval of Höganäs shareholders.
The company, in which Lindéngruppen has long been a major shareholder, will delist from the Stockholm stock exchange and start a fresh chapter in its 216-year history in private hands.
Lindéngruppen and FAM gained acceptance from more than 96 percent of Höganäs shareholders for their joint offer, which valued the company at €1.4 billion.
Jenny Lindén Urnes, Lindéngruppen chairman, told Our News that the takeover was an exciting moment both for Höganäs and Lindéngruppen.
"We're very fond of Höganäs. It's a great company so we're delighted to be able to realise a long-held dream and take Höganäs into private ownership again," she said.
"We're very pleased to have FAM as our partner. We have similar values and are committed to long-term industrial ownership. FAM also has an extensive network which will be valuable for Höganäs."
Lindén Urnes explained that metal powder is a dynamic business and Höganäs will benefit from having two strong owners committed to developing the company over the long term.
"We intend to run the company in the best way possible, and ensure Höganäs has the ability to make the most of its opportunities."
"Höganäs is very well managed and has strong global market positions in interesting growth areas."
Höganäs, she said, should feel assured of its future and confident of expanding its business in a highly innovative industry with the backing of two strong owners.
"Together we're going to continue investing for the long term. Focus on research and development is important so that Höganäs can keep moving forward."
An innovator in a growing market, Höganäs faces challenges connected to its reliance on the wider global economy and the health of the automotive industry - Höganäs' most important business segment.
"Yes, there are challenges for sure, but that is what motivates you," Lindén Urnes said. "Growth and innovation are always challenging, but we also see these as the most exciting opportunities for Höganäs."
She added: "We believe that being in private ownership is better for a research-intensive business like Höganäs, where investment cycles are long. The board and management can focus all their time and resources on the business without the short-term pressures from the stock market."
Based just a stone's throw from Lindéngruppen's headquarters in southern Sweden, Höganäs has a one-third share of the world market for metal powder.
Its products are widely used in industrial applications, including in sintered automotive components, industrial parts, electromagnetic applications and surface coatings.
New and up-and-coming applications, unveiled this month at the Höganäs-hosted Power of Powder conference, include powder-metal-only car transmission gears.
The company has more than 1,700 employees and a presence in all key markets including Europe, North America, China, Brazil, India, Japan and South Korea.