Tractel

Activity
Manufacturer of working-at-height products
Acquired
Oct 2015
Sector
Industrials
Tractel

Related links

Business
Tractel is a specialist provider of working-at-height products, including those for lifting, handling, load measurement, suspended working platforms and safety equipment. It operates globally through a network of 8,000 industrial distributors.

The company was established in 1941. It has headquarters in Luxembourg and operates across Europe, North America and Asia, with around 800 employees. Through global distribution partners and rental companies, its products are used in sectors including automotive, mining, chemicals, energy, construction and telecommunications.

Strategy
Cinven identified Tractel as a highly regarded company with a strong safety track record, strong incumbent management team and trusted brands. It is well positioned to capitalise on any upturn in the European construction market and to continue benefitting from the recovery of the US construction market. Its equipment adheres to the high standards of relevant US and EU regulation, which are the world's most stringent.

Cinven's Industrials sector team identified Tractel as an attractive and compelling investment opportunity given the following characteristics:

  • Tractel is a worldwide leader in most of its niche markets;
  • It has strong cash generation;
  • The business has strong barriers to entry due to stringent regulations, the structure of the distribution and the importance of the brand;
  • A fragmented market with buy and build opportunities; and
  • A trend towards raising safety standards regarding height safety, notably in emerging geographies.

Cinven's strategy for Tractel is to work alongside its existing management team to:

  • Consolidate Tractel's highly fragmented niche markets with the identification of bolt-on acquisitions;
  • Expand Tractel's global reach through potential acquisitions in Asia and North America; and
  • Selected sales force initiatives in specific geographies.