MVI acquires majority stake in PS Auction

The GP has acquired a 77% stake in the company, while the company's management retained a minority stake.

The deal is MVI's first investment from its second fund, which held a first close on SEK 688m in June 2020 and is aiming to reach its SEK 1bn target by Q4 2020 or Q1 2021.

The deal is the result of a sale auction launched by PS Auction in spring this year. MVI partner Stefan Karlsson told Unquote that the deal is in line with other e-commerce investments that the GP has made in the past, and that they liked the idea of a circular economy.

Karlsson said the company had "certainly not been negatively affected by Covid-19" and that the impact was "slightly on the positive side". The company generates net revenues of SEK 100m and profit of SEK 15m. 

The GP will support PS Auction's ambition to expand into more countries, pursuing organic growth with elements of a buy-and-build strategy. Karlsson said the company was eyeing local Swedish companies.

The GP is at the due diligence stage for another e-commerce deal in Sweden that it expects to sign in a month, and is in early stages for a third deal due to finalise at the end of 2020.

Company
Founded in 1958 and based in Svenljunga, PS Auction started out as a physical auction company and later became a digital auction platform for the sale of secondhand and new machines, tools, electronics, furniture and other consumer products.

The company is active in Sweden as well as Denmark, Finland and Estonia. It employs 50 staff and generates net revenues of SEK 100m (€9.6m) and a profit of SEK 15m (€163,000). 

People
PS Auction – Per Henriksson (CEO).
MVI – Stefan Karlsson (partner).  

Advisers
Equity – BDO (financial due diligence); Vadestra (commercial due diligence); Wigge & Partners (legal).

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