The recent private equity bid to buy grocery giant Morrisons (LON:MRW) was a reminder of how appealing the UK supermarket sector is to some investors. Private equity players tend to make these moves when they smell a value opportunity. But it’s also true that supermarkets - like other defensive stocks - have all-weather appeal because of their profitability and defensive dependability. And that’s something that attracts both professional and private investors alike. Morrisons isn’t the only FTSE company currently in the sights of the PE firm in question: Clayton, Dubilier amp; Rice. The firm is also trying to buy healthcare advisory company, UDG (LON:UDG). Again, as a healthcare stock, UDG is in a defensive sector. And like consumer defensives, healthcare is an industry that hasn’t really been front-of-mind for many investors in recent years. Defensive industries are usually less reliant on the economy because they sell goods that we buy in good times and bad. Pharma, tobacco, utilities and consumer defensives like supermarkets are good examples. Conversely, cyclical industries are sensitive to macro trends and the general health of the economy. They span the likes of mining, high street retail, home building and finance. In...
