With the global manufacturing sector undergoing transformation, private equity firms have been actively targeting investments in this area. Leading PE firms like KKR, Blackstone, and Carlyle have extensive experience in industrial investing. They help manufacturing companies upgrade technology, improve operations, enter new markets. This article analyzes the value creation models and successful case studies of top PE firms in manufacturing industry.
KKR’s operational excellence model for industrial companies
KKR has developed an operational excellence model for manufacturing companies based on lean manufacturing concepts. By eliminating waste and optimizing production flows, KKR helped industrial companies achieve 10-30% gain in productivity and profit margins. Representative deals include SEB in France, Gardner Denver in US, Tarkett in Europe etc.
Blackstone implements digital transformation for industrials
Blackstone integrates expertise from all portfolio companies to implement digital transformation for industrials. By leveraging data analytics, IoT sensors, cloud platforms, Blackstone upgraded manufacturing operations in Gates Corporation and other industrial holdings for better efficiency and decision making.
Carlyle supports manufacturing M&As for global expansion
With extensive networks and industry knowledge globally, Carlyle helped manufacturing companies complete cross-border M&As and establish leadership in niche markets. Landmark deals include acquisition of Atotech by Carlyle, merging it with MacDermid to create global leader in surface finishing solutions.
Top private equity firms like KKR, Blackstone and Carlyle have proven models to create value for manufacturing companies. By improving operations, adopting emerging technologies, supporting global expansion, private equity funds deliver strong returns for their limited partners through investing in the industrial sector.