Perfect market timing, attractive value dynamics and a strong position

13 February 2019

Perfect market timing, attractive value dynamics and a strong position

Rexnord had the opportunity to acquire Centa but faced some
challenges to be confident in its investment case and decision
to proceed:

• Rexnord is a market leader in power transmission – Centa
was a good fit with its core markets such as wind but was also
significantly exposed to marine – a new sector for Rexnord

• Marine, at face value, was in cyclical decline and Rexnord did
not know exactly where the market was in its cycle and how
that related to Centa’s addressable markets

• Centa was a family business and lacked organized data to
help understand the business

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