Rieter Acquires Schweiter’s SSM Textile Machinery Division
Rieter, the leading supplier of systems for short-staple fibre spinning based in Switzerland, has announced that the company has acquired the SSM Textile Machinery Division (SSM) from Schweiter Technologies AG, an innovative leader in yarn processing and winding and Swiss developer, leader, and holder of patents in electronic yarn guiding systems.
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 per cent.
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.