Enedo is a European designer and producer of high-quality electronic power supplies and systems for critical equipment, including those for the most demanding of environments.
The company’s mission is to make electricity better – reliable, secure, energy-efficient – and ready to fit its purpose. Enedo’s three main product categories are LED drivers, power supplies and power systems. Headquartered in Finland, the company operates in Italy and the US and has a production facility in Tunisia.
Enedo’s story began in Finland in March 1975. Since then, the company has grown from a six-person engineering office to a truly global organisation, operating on four continents and serving customers worldwide.
Its focus is on delivering high-performance power systems and supplies for a wide range of industry applications including industrial automation, advanced lighting systems, military electronics, transport systems, materials handling equipment, telecom systems and electricity storage systems. The company’s in-house product development aims at designing intelligent, customised, modular, and high-performance systems in close partnership with key customers.
New shape and form
Enedo has experienced ground-breaking developments over the last few years. After a long period of stagnation, the business was acquired by Swedish Inission Group, a fast-growing comprehensive supplier of tailored manufacturing services and products in advanced industrial electronics and mechanics. Under the new owner, the previously heavily loss-making business was turned around.
Fredrik Berghel, Inission’s CEO and one of the Group’s founders describes the background to the acquisition: “Inission Group provides electronic manufacturing services (EMS). We are a contract manufacturer of industrial electronics, with a full range of service offerings from product development to manufacturing logistics and life cycle guarantee. This is one major area of the business. Acquiring Enedo in 2021 means that we now have an OEM company, which now represents our second business area.”
Speaking about general market trends, he points out that Enedo’s acquisition would enhance the Group’s potential. “The growth in the power supplies industry is driven by the electrification of society – all electronics, such as 5G, IoT, batteries etc., need reliable power supplies. As such, the sector growth is expected to be higher than that of EMS.”
A winning combination
He further explains that Inission Group, established in 2007, has grown steeply over the years, following its strategy of one acquisition per year, and until 2021 the focus had been on high-mix, low-volume contract manufacturing of industrial electronics. With its own product manufacturing, the Group’s offering is now complete.
“Enedo has a strong product portfolio, a great reputation and a solid customer base. Enedo products have the potential to be supplied to Inission’s customers and the same applies to Enedo’s customers that can be offered the services that Inission can provide. Combining our offerings would create value for our customers. Being able to offer power supplies and electronic manufacturing services (EMS) in one package is a game changer in our industry,” he affirms.
Mikael Fryklund, the leader behind Enedo’s successful turnaround in the role of the company CEO says: “Inission’s investment in Enedo has been of strategic importance. Following a comprehensive turnaround, which included significant restructuring, pricing actions and operations improvement, Enedo now has a sound position in the market, is growing significantly, and, most importantly, has achieved a steep profitability improvement.”
Revenues for Q2 2023 amounted to SEK 143 million as compared to SEK 110 million reported for the same period the previous year, giving a growth of 30%. Profitability also skyrocketed. EBITA for Q2 was SEK 12.0 million compared to SEK -4.7 million reported for the same period the previous year, giving an EBITA margin improvement of 12.7 %-points. In a nutshell a tremendously successful turnaround.
“While Inission has a strong focus on the Nordics, Enedo has a solid footprint and reputation in international markets. Our main territory is Europe, which generates about 60% of our revenues, followed by a fairly equal split between the United States and Asia Pacific.”
Sustainable growth
With the ever-increasing focus on sustainability and the environment, Enedo strives to achieve a continuous development of environmentally friendly and energy-efficient products, as well as the minimization of the environmental impact of all of its operations. The use of materials is strictly controlled, covering the entire product life cycle from design to recycling or disposal at the end of the product life.
Mikael Fryklund says: “We are known among our customers for our high-quality products, and we are determined to meet or even exceed their requirements when it comes to sustainability. Sustainability is a topic that is high on our agenda.”
The same will apply for Inission, affirms Fredrik Berghel, saying that sustainable development is a prime area of future investment as demand increases, as is investment in human resources and capacity expansion. Further acquisitions are also likely.
“Inission is really an acquisition growth story and that will continue, however, perhaps at a slower pace. With the current market developments, we will probably see more organic growth as well,” he says, adding that an acquisition journey is also in the pipeline for Enedo, as the business stabilises further. “Both the power supply and contract manufacturing industries are very fragmented, with numerous consolidation opportunities out there. We are going to look at those opportunities closely.”
New markets, new opportunities
With good coverage in the Nordics, Inission is now scouting actively in Germany and several other European countries but for Enedo, the expansion will have a more global perspective.
“Growth by acquisition is definitely on the agenda for the future, following Enedo’s transformation into a successful company. Apart from our European markets, we see good prospects in the US where we have a solid customer base. Going forward, we will make use of Inission’s success story with the acquisition and capitalise on their wide-ranging experience,” says Mikael Fryklund, who himself has a track record of acquiring large companies in the past.
“Going from heavy losses over many years to a profitable business has been a major achievement. Enedo is now a well-managed and well-run business, ready to embrace its new, prosperous future.”
