A quiet revolution is underway in the Nordic industrial landscape, reshaping engineering firms across Europe and beyond. Unlike the high-profile maneuvers of traditional private equity, a growing number of specialist engineering companies are being acquired by Nordic industrial owners who prioritize long-term growth and decentralized control, preserving the identity and expertise of the businesses they absorb.
A New Model of Industrial Consolidation
Companies like Indutrade, Lifco, Addtech, and Dacke Industri are at the forefront of this trend, quietly building extensive portfolios of niche businesses. Their approach centers on acquiring well-run companies in highly specific technical areas, allowing them to operate with significant autonomy within a larger, supportive framework. This model, largely unnoticed by mainstream financial headlines, offers stability to sellers and potentially enhanced services to customers, particularly in an era increasingly focused on specialized manufacturing and secure supply chains.
“These groups represent a different kind of industrial consolidation,” explains Dr. Lars Andersson, a professor of industrial economics at the Stockholm School of Economics. “They aren’t focused on rapid restructuring and cost-cutting. Instead, they prioritize maintaining the expertise and culture of the acquired companies, allowing them to thrive within a larger, supportive framework.”
Dacke Industri: A Case Study in Action
Dacke Industri, with approximately 1,800 employees and net sales nearing SEK 4.8 billion, exemplifies this approach. The company invests in innovative technology firms across four divisions – Air and Mechatronics, Power and Motion, Measurement and Control, and Precision and Protection – while maintaining a decentralized structure where subsidiaries operate independently. Recent acquisitions illustrate how this works in practice.
In 2024, UVA LIDKÖPING, Dacke Industri’s high-precision grinding business, acquired CNC North in New Hampshire. The deal combined UVA LIDKÖPING’s century-plus of grinding experience with CNC North’s expertise in rebuilding and designing grinding machines, creating a single point of contact for North American users seeking new machines, rebuilds, and upgrades.
Further demonstrating this strategy, Dacke Industri acquired 80 percent of Milan-based Blink S.r.l. In July 2025. Blink specializes in CANbus keypads for demanding environments, including Formula 1 safety cars and ocean racing yachts, where reliability is paramount. Blink joined Dacke Industri’s Electronics division, with its management retaining a 20 percent stake.
In November 2025, Dacke Industri took a 70 percent stake in Hydronit S.r.l. In Italy, a developer of modular hydraulic power units with integrated control and IoT connectivity. Hydronit now operates within Dacke Industri’s Fluid Power Technology segment, collaborating with other group companies on hydraulics and motion solutions.
Rounding out the recent activity, Dacke Industri acquired 100 percent of Tufcot Engineering in Sheffield, UK, in late 2025. Tufcot specializes in composite materials, producing bearings, bushings, and wear pads for applications requiring low friction, corrosion resistance, and self-lubrication. Like other acquisitions, Tufcot will maintain its brand and local management while benefiting from the resources of the larger group.
These acquisitions are accompanied by a streamlining of leadership, with the appointment of division presidents, including UVA LIDKÖPING chief executive Kenneth Carlsson as President of the Precision and Protection division, further solidifying the link between local operations and overall group strategy.
A Broader Nordic Trend
Indutrade, Lifco, and Addtech follow similar playbooks, though with varying sector focuses. Indutrade, with over 200 companies in roughly 30 countries, emphasizes decision-making at the local level, while Lifco, boasting more than 250 operating companies across over 30 countries, positions itself as a “safe haven” for small and medium-sized businesses. Addtech, a listed Swedish technical solutions group built from about 150 independent companies, focuses on high-tech products and solutions for manufacturing and infrastructure customers.
This approach differs significantly from traditional private equity, offering a more permanent home for businesses. Brands, factories, and local leadership are typically retained, and there is no expectation of a quick resale. For company founders and families considering a sale, these Nordic industrial owners offer a trade-off: relinquishing independence in exchange for long-term investment, a peer network, and the potential for continued leadership roles.
Customers may benefit from improved support and a broader range of offerings. The Dacke Industri example – consolidating grinding machine supply, rebuilds, and service under one owner – illustrates this potential. Indirectly, this model also supports specialist suppliers, providing a stable base for niche businesses that might struggle to thrive independently.
As more companies in precision engineering, hydraulics, measurement, and related fields consider their options, the Nordic industrial ownership model is likely to become an increasingly attractive alternative to traditional trade purchasers and financial sponsors. The promise of autonomy within a larger group may outweigh the pursuit of the highest possible price for some sellers, ensuring the continued growth and resilience of these specialized engineering firms.
