The Physics Café is active in the growing private tuition industry in Singapore with a speciality in physics education. With healthy profit margins and strong cash flow, the company presents a good opportunity for Storskogen's Services business area and its underlying vertical HR and Competence to invest in a business with steady growth and counter-cyclical characteristics.

In Asia, Storskogen has around 750 employees and net sales of around SEK 1 billion (LTM, 30 June 2023) through its business units. Shuo-yen Choo, Managing Director of Storskogen Singapore, emphasises that the acquisition strengthens Storskogen's geographic diversification and resilience, with potential for continued value-creation for the Group.

"I am pleased to welcome The Physics Café and its founder, Dave Sim, to Storskogen. The company has achieved remarkable growth and established a position as a premium player within its fragmented industry. We anticipate collaborating with Dave and his team to explore new avenues for growth", says Shuo-yen Choo.

The Physics Café is headquartered in Singapore and has around 20 employees. Founder Dave Sim will continue to lead the business as CEO and long-term shareholder and looks forward to partnering with Storskogen.

"There are excellent opportunities for The Physics Café to continue to develop by expanding into more subject areas and age groups. I decided to work with Storskogen because I believe they are the best partner in enabling us to bring The Physics Café to the next stage of growth", says Dave Sim.

The acquisition was completed on 5 October 2023 and is expected to have a marginally positive effect on Storskogen's earnings. Based on a preliminary review the leverage ratio[1] will decrease marginally.

1. Defined as interest-bearing net debt/RTM adjusted EBITDA