In any macro-economic environment, companies look to divest non-core parts of their business. One of the main reasons they do this is so they can focus on their core assets. This in turn creates buying opportunities for PE firms.
The Jordan Co. recently made a deal along these lines. The middle-market PE firm acquired Time and Frequency, Loadrite, Spectra Precision Tools, and SECO‘s accessories business, from industrial technology company Trimble to form a new platform that is focused on precise measurement and analytical insights.
It also helps a PE firm greatly if it has operating partners and investment professionals who have a particular industry expertise in the deals they are looking at. In the case of the Jordan deal, the firm partnered with former Legacy Measurement CEO Drew Ladau.
For Trimble, the company is not likely done divesting assets yet. “We are continually evaluating our product portfolio as we work on the execution of Trimble’s Connect and Scale 2025 strategy,” said Trimble CEO Rob Painter when the deal was announced.
Sounds like there are more deal opportunities ahead for PE buyers.
– Demitri Diakantonis
