SECTOR REPORT


Expected strong momentum in the agricultural water equipment sector

In this issue of Spot On, Oaklins’ Frank de Hek offers an insight into the merger and acquisition dynamics in the agricultural water equipment market, leveraging Oaklins’ global agriculture industry teams’ extensive experience and track record in the sector.

"Supported by long-term demand drivers such as global population growth and decreasing fresh water availability, the agricultural water equipment market is growing rapidly. This strong market growth, in combination with attractive profit margins across the entire value chain, makes the agricultural water equipment market an attractive segment for industry players as well as financial investors.


On the back of increasing interest in the segment, a fragmented landscape of market players and significant sales and synergy potential, we expect a substantial increase in M&A activity in the coming years. In addition, due to high market growth and limited cyclicality of the industry, valuations are high."


FRANK DE HEK

HORTICULTURE SPECIALIST

OAKLINS, AMSTERDAM, THE NETHERLANDS