In this Research Note, we examine the Sauter Group, a Basel, Switzerland-based provider of building management and room automation solutions. This article updates our coverage in May 2022 of Sauter’s growth strategy.

Founded in 1910, Fr. Sauter AG is privately owned by the founding families (FABREL AG and FS Familienholding AG). With over 20 subsidiaries, around 3,380 employees and 300 partners worldwide, the Sauter group undertakes more than 2,000 projects per year. The business reported €692 million revenue in 2022, a 28% growth compared to €539 million in 2021.

Sauter UK

This double-digit growth can partially be attributed to the acquisition of Emtec in January 2022. With the purchase of a majority stake in the Scottish mechanical and electrical contractor, Emtec Group Ltd, Sauter augmented its UK market presence.

Founded in 2003, the largest companies in the group, based near Glasgow, Scotland are Emtec Building Services and Emtec Facility Services with eight offices in Scotland and northern England and more than 560 employees. Besides the provision of core M&E services, Emtec has diversified into various specialist fields such as renewable energy solutions, security systems and fire protection.

The Emtec group reported 2022 revenues of £87.7 million (+14% growth), according to its latest filing of UK company accounts.

In June 2023, Sauter further strengthened its presence in the UK by acquiring a majority stake in the T4 Group. headquartered in Redhill, Surrey, southern England. The T4 Group consists of three companies:

• T4 Mechanical & Electrical Ltd. was founded in 2009 by the current owners and directors and specializes in mechanical and electrical services for the construction industry. Revenues, year ending 30 August 2022 are reported as £16.3 million.
• React 4 Group Ltd., founded in 2016, provides technology for fire and control in buildings.
• Lidex Control Systems Ltd joined in 2018 and is active in the field of building services.

The group currently employs over 50 people and generated sales of around 30 million euros in 2022.

Sauter Germany

Sauter Germany operates through two subsidiaries, Sauter-Cumulus GmbH, the Freiburg-based building automation manufacturer and Sauter FM GmbH, specializing in facility management services. These businesses generated annual sales of €310 million in 2022, accounting for 45% of Group revenues. There are a total of 34 branch offices and 1,437 employees in Germany.

Following the announcement of a strategic partnership in November 2021, Sauter Germany and MeteoViva presented amanteia, a decarbonisation platform for building portfolio owners and operators, at Real Expo in October 2023.

The jointly developed solution for planning and supporting decisions for sustainability measures enables real estate decision-makers to get a quick overview of the decarbonisation path of the entire portfolio and calculates the optimal sequence of measures for this.

With amanteia, we are giving decision-makers the right tool to make their properties fit for the future, avoid stranded assets and support stable long-term value development , explains Werner Ottilinger, CEO of Sauter Germany.

With these acquisitions and strategic partnerships, Sauter’s growth strategy has expanded its Europe-wide market presence in facility services and strengthened its core building automation business for sustainable buildings. Memoori considers the business as a leading second-tier provider in the European building automation sector.

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