The industrials sector covers a wide range of activities including aerospace, automotive, consumer durables, capital goods manufacturers, textiles, paper and packaging, construction, printing, mining, energy and utilities. Corporate restructuring, as larger businesses seek to reduce debt or focus on core operations, creates opportunities.
To be successful, businesses need to focus either on volume production or operate within a specific niche. This creates the barriers to entry, protecting against price competition and margin erosion.
At Candover we look for companies that offer good growth prospects, margin improvement and are strong cash generators. We are also looking for market position, strength of technology and visible order books. Our investments in Innovia Films and Qioptiq display all these characteristics.
