AxFlow’s growth strategy is based on a combination of organic growth and acquisitions. The group has a long track record of acquiring companies that fit well with AxFlow both in terms of strategic expansion plans and its way of working and core values – good to work with, making things happen, and far-sighted.
AxFlow’s growth strategy has five building blocks: organic growth, product portfolio expansion, forward integration through customised fluid handling systems, service and after sales, and geographic expansion.
Because AxFlow is a group of companies, all of which are owned by AxFlow Holding AB, it has strengths and resources that give competitive edge. None of the companies operates in isolation. The integration that the group encourages generates considerable benefits for customers and suppliers alike.
AxFlow’s experts share application knowledge, ideas and experience across all countries. This is critical as a number of the group’s companies share the same brands. One of the most important integration projects in recent years was the opening of the AxFlow Distribution Centre in the Netherlands. This facility was the first of its type in the European pump distribution industry and delivered major benefits to AxFlow in the form of extremely competitive delivery times to customers and optimised stock and inventory handling and transport.
A flat organisation with short decision-making processes and decentralised leadership are important contributors to strong organic growth. Independent local teams with broad technical expertise and knowledge of the local market are crucial success factors.
AxFlow has a long tradition of growing through acquisitions with the support of financially strong owners. AxFlow seeks entrepreneur-driven companies. In many cases these are enterprises that are looking for a new home due to a family generational shift or that see their growth opportunities in a broader context. AxFlow can provide financial resources for further expansion, continued independence in the local market, fast decision-making through a flat organisation and access to core resources such as marketing and central distribution stockholding and complementary products and services for the local market.
Axflow is looking for acquisitions 1) for continued geographical expansion in Europe and also in Africa and Latin America, 2) of service companies to help develop a strong service organisation in every AxFlow market, 3) of companies with system skills to offer customised compete fluid handling solutions, and 4) of companies with products complementary to positive displacement pumps, for example valves and/or vacuum pumps.