Industrials

The industrials sector is one of the world's largest and includes many activities, applications and end-markets. Cinven covers a broad range of industrials sub-sectors:

• building materials and construction, from the light to the heavy end of the building materials product range;
• energy and natural resources, including metal and mining, oil and gas, utilities and renewables, and chemicals; and
• engineering and manufacturing, including industrial machinery, power and infrastructure equipment, and supply to the transport, aerospace and defence end-markets.

Our sub-sector coverage reflects the end-markets served by individual companies. These markets follow different industrial cycles, and we believe it is necessary to understand their dynamics and trends in order to pick winning businesses. We usually invest in industrial businesses that display the following characteristics:

• defensive market leadership with high barriers to entry;
• strong and relevant technology;
• a supply chain structure that supports long-term, partnership-like relationships;
• exposure to dynamic end-markets, with opportunities to promote superior organic growth and/or sector consolidation; and
• a profitable and sustainable growth profile with an appropriate return on capital.

Most industrial companies are facing significant changes within their markets due to current macroeconomic conditions. When evaluating potential transactions, we take a highly selective approach and focus mainly on businesses with strong recovery potential.

We have been active in the industrials sector for more than 30 years and have undertaken over 100 transactions in this sector. Our sector team has built up extensive sector knowledge and experience and we have established a global network of company executives and industry participants in the sub-sectors we cover. This helps us work proactively to originate transactions and develop early insights into potential acquisitions.