Headquartered in Florence (Italy), Seves is a global manufacturer of (i) high voltage glass, (ii) composite and porcelain insulators for electrical power transmission and distribution and (iii) glass blocks for architectural and interior design applications. The company operates multiple production and assembly facilities globally (Europe, Asia, Americas).
We were attracted by the possibility to invest in the global leader in both glass insulators (~70% market share) and glass blocks (~40% market share) and the favorable underlying market conditions with room for further growth in Asia and the US. Barriers to entry in glass insulators are significant, as a result of the relevant capex requirements and technical know-how. Finally, we were compelled by the profitability level of the company (with further room of improvement) coupled with a healthy and stable cash-flow generation profile and the possibility to implement a buy-and-build strategy in order to further strengthen Seves’ leadership in the market.