Kreate
Kreate is one of the leading Finnish infrastructure construction companies. The company offers high-quality solutions for bridges, roads and tracks, environmental and foundation construction, circular economy, and geotechnical needs. As a specialist in demanding projects, Kreate focuses on comprehensive quality and cost-efficiency, while operating flexibly, respecting the customer. Kreate’s mission is to build a better world every day.
Kreate was formed with the support of Intera in 2014 through a merger of three companies in infrastructure construction: Fin-Seula, specializing in foundation construction; Insinööritoimisto Seppo Rantala, specializing in bridge construction; and Kesälahden Maansiirto, specializing in track construction. Through the merger, a new brand and market player emerged, forming a unified Kreate group from the three companies.
In its initial phase, Kreate focused on integrating the companies and developing common operational models, creating a distinctive brand in the market, and attracting top industry experts. This enabled the company to fulfill its promise of executing demanding and extensive infrastructure projects. In 2017, the Railtek companies joined the group, and in 2018, the business operations of Varkauden Louhinta were acquired. Intera supported Kreate and its management in implementing its growth strategy, executing additional acquisitions, and strengthening its market position.
Intera exited from its majority ownership of Kreate at the beginning of 2021 when the company was successfully listed on the main list of the Nasdaq Helsinki Stock Exchange. Intera sold the remainder of its shares in the fall of the same year. During Intera’s ownership, Kreate’s revenue multiplied from EUR 40 million to EUR 240 million. A significant portion of this growth was organic. Additionally, the number of employees increased from 70 to about 400. Kreate has continued its strong growth also after Intera’s ownership.
Growth story
Kreate grew into one of the leading infrastructure constructors in Finland
Kreate, listed on the Helsinki Stock Exchange, is one of Finland’s leading infrastructure constructors, offering solutions for bridges, roads and tracks as well as environmental and foundation construction, circular economy, and geotechnical needs. The company was created in 2014 when Intera Partners merged three Finnish infrastructure construction companies to form a player focused on technically demanding projects requiring special expertise. Kreate’s revenue increased from EUR 40 million to EUR 240 million during Intera’s ownership. The company was listed on the Helsinki Stock Exchange in February 2021, and has since continued its strong growth, participating in many significant infrastructure projects.
Kreate’s story began when Intera recognized a demand in the stable and defensive infrastructure construction market for a medium-sized player, whose operations could combine the entrepreneurial spirit of smaller companies with the resources of a larger company, enabling participation in extensive and demanding projects. The complexity of infrastructure construction projects had risen as construction focused increasingly on growth centres, creating a growing requirement for versatile special expertise in infrastructure construction to participate in the most demanding projects.
Kreate started its journey in 2014 when Intera brought together three infrastructure construction experts: Fin-Seula, which specialized in foundation construction, a leading Finnish bridge builder Insinööritoimisto Seppo Rantala, and Kesälahden Maansiirto, which specialized in road construction.
“We succeeded in finding leading companies in the infrastructure sector whose management shared our vision. Through the acquisitions, we together created an agile all-rounder in the market, combining over 190 years of operating history and expertise in infrastructure construction”, says Janne Näränen, Partner at Intera.
”We saw the partnership with Intera as an opportunity to take the next step in the company’s growth and development. Changes in the infrastructure market and contract sizes required increasingly versatile expertise, and the limits for the company’s growth had been reached. In addition, a larger organization enabled the systematic development of career paths for our skilled personnel. The decision to partner specifically with Intera was based on positive experiences we heard from entrepreneurs and their previous success stories”, says Sami Rantala, who acted as the CEO of Insinööritoimisto Seppo Rantala when the company was acquired.
During Intera’s ownership, Kreate significantly increased its revenue from EUR 40 million to EUR 240 million, while maintaining a high level of profitability compared to the industry average. Growth was accelerated by recruiting new management and key personnel, as well as by the creation of a strong brand that set the company apart in the market, attracting the industry’s top experts to the company. In addition, the focus was on creating a clear organizational structure and developing internal processes, which were crucial as Kreate participated in increasingly extensive infrastructure projects that required expertise from multiple areas. Acquisitions were carried out selectively to ensure that the acquired companies fit seamlessly into Kreate’s strategy and corporate culture. During 2017-2019, three strategic acquisitions were carried out when Railtek-yhtiöt, Varkauden Louhinta, and Sotkamon Porapaalu joined the company.
Soon after Intera’s investment, Kreate defined its sustainability goals and started monitoring their development. Occupational safety processes were developed together with Intera’s support, and circular economy principles were integrated to the company’s daily operations. External sustainability reporting was launched in 2019.
Kreate was listed on the main list of the Helsinki Stock Exchange in February 2021 accompanied by strong public market interest. The IPO was oversubscribed many times over, attracting both Finnish and international investors. Kreate gained a record-breaking 18,600 new shareholders through the listing. Intera remained Kreate’s second largest shareholder with a stake of just over 12 percent until September 2021, after which it sold its remaining stake in the company.
Kreate’s success story has continued after the stock exchange listing and Intera’s exit. Over the past years, the company has grown at an annual rate of over 10 percent, which is considerably faster than the historical growth of 2 percent in the infrastructure market. Kreate’s sought-after special expertise, impressive references, satisfied customers, and skilled and motivated personnel provide excellent growth conditions for the future as well.
“Collaboration with Intera was the first time I worked with a private equity firm during my career. I can honestly say that the cooperation with Intera was very rewarding. Support was available whenever needed and at the same time Intera would naturally provide its framework to accelerate the company’s growth. Everything Intera did demonstrated expertise and experience in similar projects with other companies,” says Timo Vikström, who has acted as Kreate’s CEO since 2017.
Facts
Industry: Infrastructure construction
Established: 2014
Investment year: 2014
Exit year: 2021
Key figures at the time of investment:
Revenue: EUR 43 million (in 2013)
Number of employees: 65
Key figures at the time of exit:
Revenue: EUR 240 million (in 2021)
Number of employees: 400
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