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Altra Overview

In October 2018, Altra merged with Fortive Corporation’s Automation and Specialty (A&S) business to create a premier company specializing in highly engineered products, software and service solutions. Today, Altra is solidly positioned with:

  • Leading positions across a diverse set of end markets and specialty niche industries with attractive secular trends
  • A broad portfolio of operating companies with an excellent margin profile and significant margin expansion potential
  • Strong free cash flow generation supporting quick de-levering
  • A proven world class business system

Why Invest

Premier Global Leader

Strong Market Position

Margin Expansion Potential

Strong Free Cash Flow

World Class Business System

A Premier Global Company with a
Well-Established History

  • Organic growth driven by innovation and a focus on serving as a collaborative essential partner to our customers
  • Well-respected operating companies and brand names averaging over 85 years in operation
  • Leading technology in sophisticated electromechanical power transmission, motion control and automation software solutions
  • Well positioned to capitalize on future trends including Industry 4.0
  • Established track record of prudently managing the balance sheet and providing shareholder value
  • Solid platform for future disciplined strategic acquisitions
Premier Company

1 - Revenues for the 12 months ending December 31, 2019

Strong Market Position Across a Diverse Set of Attractive End Markets

Altra has a long history of leveraging its well-established industry-leading brands to serve as a critical supplier to customers across a diverse set of markets.

  • Strong position at the higher end of the technology spectrum for attractive, high-growth, high-margin end markets, including medical, aerospace and defense, factory automation and robotics
  • Growing exposure to attractive secular trends
  • Decreasing exposure to more cyclical end markets

Revenue Breakdown by End-Market & Geography1

To view full charts, scroll left and right, or click here.

1 - Revenues for the 12 months ending December 31, 2019.

Excellent Margin Profile with Significant Margin Expansion Potential

Targeting incremental 425 basis points margin improvement through:

  • Continued implementation of established profit improvement initiatives and execution of synergies associated with the A&S merger, including:
    • Facility consolidations
    • Supply chain management
    • Strategic pricing
    • Productivity improvements from application of the Altra Business System
    • Cross-selling and access to new customers
  • Continued improvement in high profit end markets

Drivers of 425 bps Margin Improvement

1 - Based on continued market improvement in high profit markets.

Strong Free Cash Flow Generation Supports Quick De-levering

  • Projecting over $1 billion of free cash flow over five year period (FY 2019 to FY 2023)
  • Prioritizing debt pay down until leverage metrics return to historical levels of 2.0-3.0x Net Debt/EBITDA

Combined Company Net Debt / LTM Adj. EBITDA1

  1. Free cash flow generation: >$1 billion in five years
  2. Leverage the Altra Business System to reduce working capital
  3. Significant cash flow generation enables quick de-levering

1 Non-GAAP measure. Click here for a reconciliation of Audited Net Income to Non-GAAP Adjusted EBITDA

2As of December 31, 2017, Altra had $276 million of indebtedness outstanding and as of December 31, 2017 on a pro forma basis after giving effect to the Transactions, Altra would have had $1,722.4 million of indebtedness outstanding.

A Proven World-Class Business System
Driving Core Growth, Developing Outstanding Leaders, & Aligning the Organization

  • A framework to drive sustainable competitive advantage and ensure superior execution of strategic initiatives
  • Directly linked to Altra’s Core Value Drivers
  • Improves the flow of value to our Customers
  • Utilizes a robust set of tools and processes to systematically identify and eliminate waste
  • Provides our Customers with innovative solutions at the shortest lead time, highest quality and best possible value
  • Supports a work environment that stimulates and fully develops the capabilities of our employees
  • Consistent, above-market returns to our Shareholders

Strategic Priorities to Drive Shareholder Value

Altra is focused on executing against its clearly defined strategic priorities in order to capitalize on value creation.

optimize A&S Integration

Deliver 425 bps margin improvement

Expediently De-lever

Drive Top-line Organic Growth

Optimize the A&S integration

  • Maximize value capture via cost and sales synergies
  • Identify and leverage combined best practices
  • Build extraordinary teams that deliver extraordinary results

Deliver 425 basis points of margin improvement

  • Continue to deploy established profit improvement initiatives
  • Execute on synergies associated with the A&S merger
  • Capitalize on improving conditions in high profit end markets

Leverage strong Free Cash Flow generation to expediently de-lever and strengthen the balance sheet

  • Prioritize debt pay down until leverage metrics return to historical levels of 2.0-3.0x Net Debt/EBITDA

Create an environment conducive to top-line organic growth

  • Effectively deploy business system tools to support continuous improvement in leadership, growth and lean
  • Capitalize on technology sharing to accelerate innovation
  • Strategically infuse capital into the operating companies to support growth and business improvements