In Scandinavia, financial investors are buying up medium-sized companies

The Swedish lift market is undergoing a fundamental transformation. Unlike in other European countries, it is not the major OEMs that are buying up small and medium-sized enterprises (SMEs), but new, financially strong groups.

LIFTjournal spoke to Daniel Nyman, CEO of the Ascenco Group and until recently, Chairman of the board of the Swedish Elevator Association, about this dynamic, the strategies behind it, and the cultural differences between the European and Japanese markets.

Photo: © Martina Lundqvist/ Ascenco Group

Mr. Nyman, in Germany, the takeover of medium-sized elevator companies is a huge issue. There is even talk of the "disappearance of the SME sector". What is the situation in Sweden?
Nyman: This dynamic has been going on for many years in the Swedish market. However, from what I understand, in the German market, it is mainly the large, multinational OEMs that are acquiring the SMEs. In the Nordic market, and specifically in Sweden, the key actors in the last 10-12 years have been private equity-backed groups consolidating the market. These new players see the elevator industry as a very stable and attractive investment.

The long-term service contracts provide a reliable, recurring revenue stream, which is highly valued in today's volatile economic climate. This revenue stability, a total focus on acquisitions as strategic workflow together with a different pitch to the sellers, is in my opinion the main reasons why these companies are usually succeeding meeting the sellers.

Photo: © Ascenco

That's an interesting point. Why do you think we hear so little about major acquisitions by the big OEMs in the Nordics? Are they simply being outbid?
Nyman: It's largely a matter of valuation and strategic approach. The financial investors and the new acquiring groups often have a different, more aggressive valuation model. They look at the long-term cash flow and the potential for synergies within a growing group, which allows them to justify their prices. This has led to a landscape where new conglomerates of lift companies have been formed. It’s not just Ascenco; there have been several other players pursuing a similar strategy of uniting strong, local companies under one umbrella.

You are now CEO of the Ascenco Group, one of these new players. The group has made four acquisitions in the last year. In the last six months expanding into Norway and last week also to Denmark, via Heiskompaniet AS and SJEC A/S respectively. What is your strategy for the coming years?
Nyman: The Ascenco journey is a story of strategic growth. It began with a carve-out that became Nordic Lifts. We then acquired a smaller, insolvent company to build our operational foundation. This year, our growth has accelerated significantly: Hiss-Craft, a well-regarded company in the north of Sweden joined us in February, followed by Stockholm Hiss-Service in June. We will definitely continue this journey of growing both through more companies joining the group as well as organic growth where we are.

Before Ascenco, you worked with another PE owned company that was acquired by an Asian multinational in 2022. How do you see the Asian companies?
Nyman: I believe at that time Europe was (and should still be) an interesting market for Asian players in general. We have a high GDP / Capita, an old population of elevators and a mature market that is stable. Many Asian countries like China and Japan have an expected sharp decrease in population making their markets less attractive. Then they need to look outside their local geographies. However, with the current geopolitical situation I think it is very difficult to predict how they look upon Europe currently.

As former Chairman of the Swedish Elevator Association, you have a view of the entire market. The association recently highlighted that Sweden has the oldest elevator fleet in Europe, with 20,000 older elevators posing serious safety risks. Why is a wealthy and safety-conscious country like Sweden lagging behind?
Nyman: This is one of the biggest and most frustrating challenges for our industry and for public safety in Sweden. There are several interconnected reasons. Firstly, and most importantly, the regulatory framework for elevators in existing residential buildings is not binding enough. We have modern European standards, but there is no legal obligation for building owners to upgrade to the latest safety levels, such as installing inner car doors, unless major modifications are made anyway.

Secondly, there is a clear lack of political will and public awareness. Safety upgrades for elevators are not a topic that wins elections. The government has so far shied away from mandating these crucial safety upgrades, likely due to concerns about the costs for property owners and housing cooperatives. We as an association are working tirelessly to change this through lobbying and public information campaigns, but it is a very slow and difficult process.

Another pressing technical challenge is the shutdown of 2G/3G networks across Europe. How far along is Sweden in converting emergency call systems in elevators to 4G/5G technology?
Nyman: This is an extremely urgent issue that we are actively addressing. In Sweden, the 2G and 3G networks are scheduled to be completely shut down by the end of 2025. We have tens of thousands of elevators whose emergency communication systems rely entirely on this older technology. A significant number has already been converted, but a large portion still needs to be upgraded. The association is running intensive information campaigns to urge all building owners to act now and not to wait.

If they delay until the last minute, they will face serious problems: inevitable bottlenecks in the supply of hardware and, more critically, a shortage of qualified technicians to perform the installations. This could leave their elevators non-compliant, inoperable, and – most importantly – unsafe. It truly is a race against time to ensure continued safety and connectivity for all lift passengers.

The interview was conducted by Ulrike Lotze

More informations: Daniel Nyman is CEO of Ascenco. He is a member of the Swedish Lift Association (Hissförbundet) since 2013 and was its chairman of the board until February 2026. The 55-year-old holds a Master of Science in Business and Economics from the Stockholm School of Economics. He has worked in the lift industry since 2010.

ascencogroup.com
hissforbundet.se/en