Dahlgren Capital Private Equity has announced a strategic investment of 15 million SEK in Lyckegård Group (publ) through a directed new share issue. This marks Dahlgren Capital's fourth strategic deal in less than six months, reinforcing its commitment to identifying and developing undervalued smaller companies with high growth potential.

Lyckegård Group, listed on Nasdaq First North, is a market leader in innovative and sustainable irrigation solutions for agriculture, golf courses, and urban environments. With an annual turnover of approximately 200 million, the company has a unique business model combining sales of market-leading third-party products, in-house developed products and software, as well as turnkey installations and ongoing services.

"Lyckegård is a company with enormous potential in a market that is in the midst of a transition towards sustainable and climate-smart solutions. With only 3 percent of Sweden's agricultural land equipped with mechanical irrigation systems, there is enormous room for growth. It is in many ways a classic 'buy and build' case where we will grow the company through acquisitions as well as organically. Our common goal is to establish Lyckegård as the leading player in irrigation systems in the Nordic region and eventually internationally," says Gustaf Karling, co-founder of Dahlgren Capital Private Equity.

Kent Stenberg, CEO of Lyckegård Group, comments: "We have carried out an extensive strategic transformation to concentrate on the growing and profitable business area of irrigation and outdoor environments. With Dahlgren Capital as a partner, we now gain access to strategic expertise and financial muscle to support our growth journey towards becoming the market leader in Sweden, Norway, and Finland in the coming year."

The investment in Lyckegård is part of Dahlgren Capital's broader strategy to identify and develop undervalued smaller companies with high growth potential. Over the past six months, the company has made strategic investments totaling 40 million SEK in Westpay, EasyFill, Comintelli, and now Lyckegård Group, with an additional 5-8 investments planned for 2025.

Gustaf Karling concludes, "There is an excess of smaller listed companies in the Nordic region that do not reflect their fundamental values in their stock prices. We continue to identify these companies and collaborate with entrepreneurs to create long-term value. Our goal is to be able to complete 2-3 exits per year within the framework of our PE operations."

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