In this Research Note, we examine the Bemsiq AB business, based on their 2023 Group Overview, investor presentations, annual report of their parent company and the development of their buy and build strategy.

Bemsiq, with headquarters in Gothenburg, Sweden, consists of a group of 7 companies and 511 employees providing building automation field devices including HVAC sensors, transmitters and room controllers (78% of 2022 revenues) and energy metering products, including gateways, communication modules and IoT sensors.

The group is a separate business area within Investment AB Latour, the listed Swedish mixed investment group.

The business unit reported 2022 revenues of SEK 1,334 million (around USD $125 million), with an organic growth in net sales of 13.1% and an operating margin of 22.8%.

The Bemsiq building automation product portfolio is represented by four brands – Greystone, Produal, Sensortec and S+S Regeltechnik – with combined revenues of SEK 1,040 million in 2022. The metering offering is represented by three brands – DENT Instruments, ELSYS and Elvaco – with combined revenues of SEK 458 million in 2022.

Produal is the largest revenue contributor (32%) to the Bemsiq group, with EUR 40 million sales and 169 employees. Their wide product offering includes controlling, measuring, actuating, and commissioning, complete with system components.

Greystone Energy Systems Inc. is an ISO-registered manufacturer of HVAC sensors and transmitters for Building Management Systems. The Canadian company reports 147 employees and CAD 31 million or 18% of 2022 Bemsiq sales.

In August 2023, the New Brunswick provincial government supported workforce expansion at Greystone by providing $280,000 in payroll rebates to add 34 new full-time jobs in Moncton between 2022 and 2025.

In February 2022, S+S Regeltechnik GmbH completed an agreement to acquire the German company Consens GmbH. The company has 13 employees and manufactures devices, sensors, components and testing technology for humidity, temperature and air quality. Sales amounted to EUR 2.9 m in 2021, with a level of profitability well above Latour’s financial targets. S&S Regeltechnik reports 87 employeees and accounts for EUR 25 million or 18% of 2022 Bemsiq sales.

Bemsiq Acquisition of Dent Instruments

On 27 December 2022, Bemsiq augmented its metering business through the acquisition of the entire shareholding of DENT Instruments Inc. The company was established in 1988 and has over 30 years of experience in designing, manufacturing, supplying and selling products and accessories for the metering industry.

Its energy-saving and data-collection products are used by industries in the energy and solar energy sectors, offices and buildings, telecommunications and rechargeable vehicles sectors. Dent has its head office and manufacturing facilities in Bend, Oregon (USA) and has an international customer base. Total revenues in 2022 are estimated at USD 15 million, with a profit level well above Latour’s financial target.

Bemsiq is continuing its strategy for profitable growth through expansion of its European and North American footprint.

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.