Why Invest

Leading position within critical areas of the industrial supply chain

• Scale and technical expertise in motion, power, and control technologies creates strong competitive moat
• Integral role in optimizing the efficiency and safety of industrial companies’ facilities and most critical assets
• Unique position to benefit from emerging growth tied to next generation automation and smart technologies

Enhanced Organic Growth Profile

• Significant cross-sell opportunity through expanded solution capabilities
• Secular growth tailwinds tied to aging labor force, plant floor optimization
• Expansion into faster growing industry verticals and advanced industrial solutions

Strong and consistent cash generation

• Free cash generation averaging over 120% of adjusted net income the past five years
• Provides mechanism to self-fund growth, support balance sheet, and drive shareholder returns
• Self-help margin expansion and working capital opportunities support cash generation profile long term

History of consistent margin improvement and cost discipline

• Investing and growing in higher margin verticals and industry segments
• Leveraging systems investments, cost discipline, and operational excellence initiatives
• Supports stronger earnings power and cash generation long term

Proven acquirer in large, fragmented market

• $70+ billion addressable market with “Acquirer of Choice” status given leading/technical position
• 27 acquisitions since 2012 representing over $1 billion in annual sales
• Target $100 million (~3%) of annual sales growth from acquisitions

Demonstrated Commitment to ESG Practices

• Actively advising customers on how to save energy in their operations and reduce their overall environmental impact
• Implementing greener practices in our operations
• Promoting diversity and continuous learning across our organization, as well as supporting the well-being of our associates and our communities