Rieter has acquired the SSM Textile Machinery Division from Schweiter Technologies AG of Switzerland.
SSM, the world’s leading supplier of precision winding machines in the fields of dyeing, weaving and sewing thread preparation, enjoys success in individual segments of filament yarn production. In 2016, it 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 million and liquid funds. Rieter is financing the purchase price from the existing funds. The acquisition will have a positive impact on earnings per share.
SSM comprises SSM Schärer Schweiter Mettler AG in Horgen in Switzerland and subsidiaries in Italy and China. SSM is also represented worldwide with 12 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. Its 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.