Edgewood Management LLC on Linde PLC
Thesis
Edgewood views Linde as a high-quality operator in an attractive industrial-gas oligopoly supported by long-term take-or-pay contracts, regional density advantages and pricing power. Management's disciplined underwriting has produced returns on capital above 30% excluding intangibles in recent years. Space and electronics are viewed as underappreciated growth drivers because Linde supplies gases for more than 60% of U.S. rocket launches and is a leading supplier to advanced chip fabs. Edgewood expects pricing, productivity, buybacks, bolt-on acquisitions and structural end-market growth to support double-digit EPS growth through the cycle.
“High-quality operator in an attractive industry”