• Bridgepoint invests in Safe Life
• Implied valuation +15% vs. reported value, SEK 525m released
• Positive implications for Byggmästaren

Byggmästaren frees up SEK 525m in Safe Life transaction amid Bridgepoint partnership

Byggmästaren announced on Friday that it will unlock SEK 525m in liquidity via a transaction in which Bridgepoint will become the new majority owner of Safe Life, through a combination of primary capital injection and acquisition of existing shares. Following completion, Byggmästaren’s stake will decrease from ~30% to ~12% in a recapitalised Safe Life. The transaction values Safe Life approximately 15% above Byggmästaren’s last reported value, implying an EV of SEK ~5.5bn. Closing is expected in late Q3, subject to regulatory approvals. Since Byggmästaren’s initial investment in 2020 (total investment of SEK 264m), Safe Life has grown from SEK ~60m in sales to SEK ~2.5bn in annual pro forma sales. Safe Life continues to see significant growth opportunities, and Byggmästaren intends to remain a committed shareholder and partner in its ongoing development.

Several positives for Byggmästaren

Prior to the transaction, we estimate Safe Life accounted for ~50% of Byggmästaren’s GAV. On a pro forma basis, we expect this to decrease to ~39% of GAV (29% of NAV), reducing concentration risk and improving portfolio diversification. The liquidity generated will lift Byggmästaren’s net cash position to over SEK 600m, providing significant capacity for new investments. Moreover, the implied 15% uplift in Safe Life’s valuation translates to a ~7% pro forma increase in NAV.

Pro forma NAV discount of 25%

Following the transaction, we assess that the pro forma NAV discount widens to 25% (from 19%), notably above the five-year average of 8% and still above our target range. Byggmästaren’s long-term track record remains strong, with core holdings such as Safe Life and Green Landscapin