Rieter Acquires SSM Textile Machinery Division From Schweiter Technologies AG

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Rieter Acquires SSM Textile Machinery Division From Schweiter Technologies AG

Switzerland-based short-staple fibre spinning systems supplier Rieter Group has announced that it has acquired the SSM Textile Machinery Division (SSM) from Schweiter Technologies AG, based in Horgen, Switzerland, on June 30.

SSM is the world's leading supplier of precision winding machines in the fields of dyeing, weaving as well as sewing thread preparation and enjoys success in individual segments of filament yarn production.

In fiscal year 2016, SSM generated net sales of CHF (Swiss Franc) 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 stated that it has financed the purchase through existing funds and that the acquisition would have a positive impact on earnings per share.

SSM which has subsidiaries in Italy as well as China, is also represented worldwide with 12 of its own service stations and 80 agents in all major markets.

With this acquisition, Rieter has invested 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 provide information on the current business situation in its semi-annual report on July 20, it has announced.

Rieter is the world's leading supplier of systems for short-staple fibre spinning. Based in Winterthur (Switzerland), the company develops and manufactures machinery, systems and components used to convert natural and manmade fibres and their blends into yarns.

Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four end spinning processes currently established on the market. With 15 manufacturing locations in nine countries, the company employs a global workforce of some 5,020.

Rieter is a strong brand with a long tradition. Since the company was established in 1795, Rieter’s innovative momentum has been a powerful driving force for industrial progress. Products and solutions are ideally tailored to its customers’ needs and are mostly produced in customers’ markets.

As a market leader, Rieter is well positioned in the global competitive environment, with a global sales and service organisation along with a strong presence in core markets like China as well as India.