Business, Stord | The family business is bought out after 65 years: – Major restructuring

BUSINESS: – I think this will be great, says Jan Richard Dyrseth to Haugesund’s Avis.

Sunnhordlendingen is the managing director of Aritech, which is a total supplier of technical services.

The company has offices in Stord and Haugesund, with around 200 employees.

Soon there will be even more. Aritech has bought the shares in Badeva, which for over 60 years has provided plumbing and bathroom services in Karmøy and Haugesund.

One tip opened a door

First a little about the history of the company.

Arne Kolnes became regional manager for Aritech two years ago. He became that after the company acquired Teknisk Buerau.

– The department has a fairly large emphasis on electrical, and a little less emphasis on pipes. That’s precisely why we needed more of the latter, says Dyrseth.

A phone call from lawyer Runde Lande proved to open a door. He said that Badeva on Karmøy could be interesting, after talks with the company, says Dyrseth.

– Arne (Kolnes) and I talked about how this could be exciting. We quickly found out that it was like a glove, as we had so many more electricians than plumbers here at the house, he says.

Family business since day one

The duo from Aritech therefore contacted the general manager of Badeva, Terje Olsen, to find out more about a possible acquisition.

– We had a good chat and coincided interests, says Olsen, who is approaching retirement age.

Terje Olsen’s father started the company almost 65 years ago. After his death, Olsen has operated together with his wife Grethe Olsen for 25 years.

In other words, a family business since day one.

– We see that the industry is changing a lot. It is moving towards larger and larger units. It is more difficult to run a shop now than before. Trade is more difficult with all the digitization that is happening around us. External demands are much greater than before, says Olsen about the challenges of running for yourself.

Badeva had an operating income of NOK 37 million in 2022, according to Prof.

– We realized that the future for a medium-sized company would become more and more difficult. I contacted Rune Lande to see what opportunities we had for our company, and how we were going to allow generational change to happen, says Olsen, who has a son who is an engineer and himself works in Badeva.

Merge in one month

He also says that both he and his wife are looking to the next generation, and admits that age has become an issue.

– It is natural to pass on the baton soon. At Aritech, there were opportunities for our employees, both for further work, but also for professional development. Our son also wanted to enter a larger professional environment. It was a win-win situation for both us and Aritech, says Olsen.

Aritech’s regional manager, Arne Kolnes, is pleased that Badeva will now become part of the company.

– We have plans to merge the company on 1 June. An employment agreement has been issued to all Badeva employees. We have already entered into a lease agreement for a large part of the building we have here at Norheim, says Kolnes.

He expects everything to be in place after this summer, around September.

– The departments will then be co-located. Everyone is then in the same house. It is a big advantage, because it is much easier to operate when everyone is in the same place, says the regional manager.

This is how it works in practice

How will it be with a new owner?

– It turns out that it is difficult to run a plumbing shop. You have many big competitors. What we are trying to do now is to create a showroom. As a customer, you can come in and feel that you are in a plumbing, electrical or ventilation environment, and see what you can get on offer, says Jan Richard Dyrseth.

For example, customers can design a bathroom in 3D, he mentions.

– But we will not have a full-scale store where you can pick up a toilet, sink or batteries. It is not a path we want to follow, he says.

Major restructuring

Haugesund’s Avis asks the driver how much it cost to buy up Badeva. He replies that they have agreed not to comment on the price.

– But we have bought the shares, and the owners of Badeva an opportunity to get partial settlement in shares, so that they become co-owners in Aritech.

– Do you have any thoughts on how big a part-owner you want to be in Aritech, Terje Olsen?

– No, we do not aim to become a major co-owner. Now we have agreed on a level, and will take it from there, he says and smiles.

– There is a lot of history in this family business, will it be sad to sell the business?

– It is a big change. I have been my own boss for many years. Suddenly I will be part of something bigger. It will be interesting. We have thought through whether this is sad or not. I’m actually not sure. I feel it is the right and right time, we are at the age to do it. We do it planned. We have brought all employees with us and the response has been very positive, says Olsen.