On June 30, 2017, Rieter acquired the SSM Textile Machinery Division (SSM) from Schweiter Technologies AG, Horgen (Switzerland).
SSM is the world’s leading supplier of precision winding machines in the fields of dyeing, weaving and sewing thread preparation and enjoys success in individual segments of filament yarn production. In the fiscal year 2016, SSM generated net sales of CHF 85.9 million with 246 employees and achieved an EBITDA margin of 14.8%.
The purchase price amounts to CHF 124.2 million, consisting of an enterprise value of CHF 100.0 million and liquid funds. Rieter is financing the purchase price from existing funds. The acquisition will have a positive impact on earnings per share.
SSM comprises the companies SSM Schärer Schweiter Mettler AG in Horgen and subsidiaries in Italy and China. SSM is also represented worldwide with twelve of its own service stations and 80 agents in all major markets.
With this acquisition, Rieter is investing in adjacent fields of the textile value chain. SSM has a strong brand and generates stable cash flows with an attractive EBITDA margin. SSM’s expertise in the field of precision winding offers opportunities for Rieter in the business with short-staple spinning machines. Rieter will continue to operate SSM in its current form and with the existing management. The business will be attached to the Business Group Components as an independent unit.
The Rieter Group will today make a statement on the acquisition during a telephone conference at 1 pm (CEST) and will be available for questions (dial-in details: page 2).
Rieter will provide information on the current business situation in the semi-annual report on July 20, 2017.