Schweiter Technologies AG has come to an agreement with the Swiss Rieter Group on the sale of all shares in the SSM Textile Machinery division and has executed the transaction simultaneously.
SSM Textile Machinery (www.ssm.ch) is a leading manufacturer of machines for yarn processing and precision winding. In 2016, this division of Schweiter Technologies Group reported revenues of CHF 85.9 million and an operating profit of CHF 11.6 million with a headcount of 246 employees.
The selling price, including the cash resources remaining within the company, is CHF 124.2 million, and the enterprise value (cash free / debt free) is CHF 100 million. The overall transaction results in a book profit of approximately CHF 90 million.
Rieter (www.rieter.com) is the world’s leading supplier of systems for short-staple fiber spinning.
Rieter is listed on the SIX Swiss Exchange under ticker symbol RIEN.
Rieter will continue to operate SSM Textile Machinery in its existing form – i.e. as a Swiss company headquartered in Horgen and with production facilities in Italy and China as well as its global distribution network – and with the existing management team. With the completion of the transaction, Ernesto Maurer, Chairman of the Board of Directors of SSM, has stepped down from the Group Management of Schweiter Technologies.
Schweiter Technologies is convinced that the sale of this business to Rieter makes good industrial sense and that it has found the right owner for the further development of the textile machinery business. With the sale of its SSM Textile Machinery division, Schweiter Technologies will be focusing wholly on the expansion and further development of its composites business (3A Composites).
In light of current events, a Media and Analyst Conference will be taking place at the Hotel Marriott, Zurich, at 11.00 on 3 July 2017.