Karnell Group Acquires flex7 Ltd UK Lighting Specialist

Karnell Group AB, a Swedish industrial technology group, has completed the acquisition of flex7 Ltd, a UK-based specialist in modular lighting connection and control systems for commercial and public buildings. The deal secures a 98% stake in flex7, transitioning the company from founder ownership to long-term industrial ownership under Karnell.

flex7, founded in 1998 and headquartered in Twyford, UK, generates approximately GBP 9 million in annual revenues with strong profitability. The company has established a leading position in a niche segment of the electrical installation market, offering modular, plug-and-play systems that enable faster installation, greater flexibility, and improved energy efficiency. These features have made flex7 a preferred choice among electrical installers across the UK.

The company’s customer base is well diversified, with significant sales linked to publicly funded sectors such as education, healthcare, and other public buildings, alongside exposure to offices, retail, and hospitality markets. This diversification provides a stable and resilient demand profile, aligning with Karnell’s strategy of acquiring profitable niche businesses with strong market positions.

Under the terms of the acquisition, Karnell has acquired 98% of flex7’s shares, with the remaining 2% retained by Paul Bellamy, the company’s Managing Director, who will continue in his role to ensure operational continuity. The acquisition integrates flex7 into Karnell’s Product Companies business area, which focuses on small and medium-sized product companies with attractive financial profiles.

Petter Moldenius, CEO of Karnell, commented, “flex7 is a high-quality niche business with a strong market position, a recognised brand, and a loyal customer base. The company fits well with our Product Companies business area and benefits from structural demand driven by energy-efficient and smart buildings. We look forward to supporting flex7 in its continued development.”

flex7’s co-founder Steve Garton expressed confidence in the transition, stating, “flex7 has been built with a clear focus on delivering simple, reliable solutions and building long-term customer relationships. We are proud of the position the company holds today and are glad to have found a new long-term owner who understands our business and shares our values.”

Karnell’s acquisition of flex7 is strategically significant as it strengthens the group’s presence in the UK electrical installation market. The deal enables Karnell to leverage flex7’s established installer network and brand loyalty to cross-sell its existing product portfolio and expand sales in public sector segments. Additionally, Karnell plans to introduce flex7’s modular lighting solutions into its other geographic markets, enhancing its product offering in energy-efficient and flexible installation systems.

Operational synergies are expected through consolidation of procurement and supply chain functions, streamlining manufacturing processes, and integrating administrative support. Combining Karnell’s R&D capabilities with flex7’s modular technology is anticipated to accelerate product innovation and improve installation efficiency.

Despite the opportunities, integration challenges include aligning corporate cultures between a founder-led UK business and a Swedish industrial group, maintaining flex7’s customer relationships and brand identity, and managing potential supply chain disruptions during consolidation.

Karnell Group, listed on Nasdaq Stockholm, operates a decentralized decision-making model with an eternal ownership horizon, providing entrepreneurs and family-owned businesses with a long-term and responsible partner. The group currently comprises 20 companies across Sweden, Finland, the UK, and Italy.

Looking ahead, Karnell aims to support flex7’s growth by leveraging complementary product portfolios and customer bases, capitalizing on stable demand from public sector end markets, and achieving cost savings through operational integration. The acquisition is expected to enhance Karnell’s competitive position in the modular lighting segment amid accelerating industry consolidation.