Polaris and Sealing System Enter Partnership

Posted on 19th April 2023

Polaris, the Nordic mid-market private equity investor, has acquired a majority shareholding in Sealing System – a Scandinavian supplier of intralogistics and full-scope automated packaging and palletizing lines.

Based in Grindsted, Denmark, Sealing System was established in 1998 and offers complete, automated end-of-line and intralogistics solutions, which optimise processes and production while ensuring efficient track & trace functionality, data capture and integration to customers’ IT systems. The company has around 155 employees at its facilities in Denmark, Norway and Belgium.

Sealing System covers the full process from layout and project management to installation and subsequent service of the solutions, which are based on third-party products from well-reputed robot manufacturers and suppliers of automated packaging machines as well as own palletizing machines. The company has generated average annual revenue growth of 25% since 2019 and reported revenue of more than DKK 200 million in 2022 with an operating profit (EBITDA) of DKK 20 million, in an industry characterised by rapid growth driven by increasing industrial automation and nearshoring of production.

“We see great potential in Sealing System, which is a well-run business with skilled employees and a unique position in an attractive market with good growth prospects. The company already supplies some of the largest and most quality-conscious companies in the food industry, the wider industrial production space and within the pharmaceutical segment. We look forward to cooperating closely with management and employees to reach more customers with Sealing System’s solutions and continue the growth in the coming years,” says Allan Bach Pedersen, Partner at Polaris.

The market for Sealing System’s solutions is expected to grow in the coming years, particularly in Denmark and a number of other European markets where more companies are focused on establishing automated production to simplify their supply chain, increase efficiency and mitigate higher salary costs. Sealing System has unique positions of strength within the food industry and industrial production as well as a rapidly increasing activities within the pharmaceutical industry and bioproduction of sustainable protein, where the company has developed an internal logistics solution for commercial insect production, in close cooperation with ENORM Biofactory.

”We are pleased to welcome Polaris and look forward to the partnership, which will provide Sealing System with the best foundation for leveraging our comprehensive experience and realising the growth potential our industry offers and our company deserves. We will gain access to a toolbox enabling us to strengthen our processes and management, focus the business and make the right strategic investments,” says Rolf Tange, CEO and co-founder of Sealing System.

In connection with the transaction, Sealing System will strengthen the board of directors with significant competencies in industrial production. Ib Nykjær, a board professional and previous CEO of SFK Leblanc and Tetra Pak Hoyer Equipment, will join the board as Chair.

”Polaris shares our great ambitions for Sealing System and will contribute to the development of the company, enabling us to become truly leading in our field by focusing on our customers and seizing the great opportunities in growth areas within the pharmaceutical industry and production of sustainable food, such as insects. We look forward to driving this development with Polaris and our fantastic employees,” says Kjeld Østergaard Jensen, Sales director and co-founder of Sealing System.

The ownership change does not entail changes to daily management or organisation, and existing customer relations are not affected. The parties have agreed not to disclose the purchase price.