Rototec

Growth story

Rototec drives the green transition with geoenergy solutions

Geoenergy company Rototec was founded in 2007 by entrepreneur Mikko Ojanne and his brother Timo Ojanne. After 15 years and more than 60,000 drilled geoenergy wells, Rototec is now the largest provider of geoenergy solutions in Europe. Geoenergy is renewable energy, which can be collected from the ground, and which can be used to heat and cool properties of all sizes.

Rototec offers all the services from consulting and design of geoenergy systems to their implementation. In Intera’s ownership, the company became the largest geoenergy company in Europe and one of the leading renewable energy companies in the Nordic countries. During the years 2014–2021, Rototec acquired 12 companies, grew its business in Finland and Sweden, and expanded to Norway. With Intera’s support, the company nearly tripled its sales, from €22 million (2013) to €60 million (2021).

“Intera’s professional board work, support in financing and a wide network of experts took the operation of our family business to a new level. For me, it is important that Rototec dares to be innovative and make mistakes. Companies aiming for growth should have more courage and determination in making big decisions. The co-operation with Intera provided us with strong support for our first acquisitions and large investments,” says Mikko Ojanne, founder of Rototec.

During its early years, Rototec mainly focused on heating solutions for small properties. In Intera’s ownership, the business was expanded to include cooling solutions and planning and consulting for geoenergy systems. Rototec became the market leader by expanding to larger and more demanding projects.

Partnership laid a solid foundation for Rototec’s next phase of growth

Through acquisitions and determined growth in the Nordics, Intera established a leading player in a fragmented industry. Today, Rototec is a forerunner in geoenergy systems and drilling both within and beyond the Nordics.

“With the new owner, we will head to the North American and European markets, where there is an aim to increasingly reduce dependence on fossil fuels. We are currently focusing on scaling our business through acquisitions, IoT projects, recruiting and training drillers, and introducing new operating models and systems,” says Alexej von Bagh, CEO at Rototec Group.

Rototec’s scale, strong market position and solid expertise provided competitive advantage, which convinced Formica Capital, a Swedish family-owned investment company. With a focus on sustainable business, Formica Capital acquired Rototec in the spring of 2021. Formica Capital is known as a long-term investor.

“The co-operation with Rototec was based on a strong partnership. We always worked towards common goals in a transparent and straightforward manner. Successful Nordic growth and positive sustainability effects in the sector were achieved with a can-do attitude, which made our journey particularly rewarding. We are following Rototec’s next phase of growth with great interest as it promotes the green transition with Formica Capital,” says Juhana Kallio, CEO at Intera Partners.

FACT BOX

• Field: Geoenergy
• Established: 2007
• Year of investment: 2014
• Year of exit: 2021

Key figures in the year of investment:

• Turnover: €22 million (2013)
• Personnel: approximately 25
• Focus: Delivering geoenergy systems for small properties

Key figures in the year of exit:

• Turnover: €60 million (2021)
• Personnel: approximately 100
• Focus: Full range of services from consulting and design of geoenergy systems to their implementation for large properties and industries
• >60,000 energy wells drilled with an estimated saving of ~ 285 000 tonnes of CO₂
• 12 acquisitions