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June 28, 2019

Nordstjernan’s subsidiary Etac invests in HoverTech, a US patient handling company

Nordstjernan’s wholly-owned subsidiary Etac has made an investment in 70 percent of the shares in the US company HoverTech International (“HoverTech”). The investment strengthens Etac’s global position and will create a strong platform for further growth in Europe, the US and important export markets.

Etac is a global supplier of mobility equipment and solutions used in home care, long term care and acute care. Etac’s sales in 2018 amounted to approximately SEK 1,750 million and the company has just over 900 employees. Etac’s products include manual wheelchairs, patient handling equipment, bathing and toileting aids, pressure care products as well as a specialized range of mobility equipment for children and adolescents. The head office is located in Sweden with manufacturing and R&D units in Europe and North America.

HoverTech is a US leader in air-assisted patient handling technologies, focusing on devices for lateral transfer and repositioning. The company’s sales in 2018 totaled approximately USD 100 million. The company is owned by its founder Dave Davis and family, and is based in Allentown, Pennsylvania.

“The investment in HoverTech represents an acceleration of Etac’s growth and is in line with Nordstjernan’s ambition to create and further develop qualitative companies in healthcare and medtech. As a result of the acquisition, Etac is aspiring to become Nordstjernan’s largest single holding”, says Nordstjernan’s CEO Peter Hofvenstam.

“The investment in HoverTech is a game-changer for Etac. It represents much greater exposure toward the US and creates a platform to accelerate growth in the region. The substantial cross sales potential strengthens Etac’s global position as a supplier of patient handling equipment”, says Etac’s chairman Nora Larssen.

“We are very pleased to have Etac and thereby Nordstjernan as the majority shareholder in HoverTech. Nordstjernan and Etac have a long term growth oriented focus which is a great fit with HoverTech. Together with Etac we look forward to continue our growth journey and expand internationally and take HoverTech to the next level”, says Dave Davis, founder and CEO of HoverTech.

Nordstjernan has in recent years actively invested in the care, healthcare and medtech sector, and today holdings within this sector account for almost 20 percent of Nordstjernan’s net asset value.

Nordstjernan has a long tradition as an active shareholder in listed and private companies. Nordstjernan was founded in 1890 and the company’s major shareholders are the Axel and Margaret Ax:son Johnson Foundations.

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