04.10.2005 - Rieter reinforces its components business: acquisition of the Graf Group
Rieter Holding AG acquired the entire share capital of Hogra Holding AG, the parent company of the Graf Group, on October 3, 2005. This will further augment Rieter Textile Systems' leading role as one of the world's largest suppliers of technology components in the staple fiber machinery sector.
Winterthur – Rieter Holding AG acquired the entire share capital of Hogra Holding AG, the parent company of the Graf Group, on October 3, 2005. This will further augment Rieter Textile Systems' leading role as one of the world's largest suppliers of technology components in the staple fiber machinery sector.
In 2004 the Graf Group generated sales of some 90 million CHF, about 7 million CHF of which were made to Rieter, with a workforce of almost 600, of whom 180 are employed in Switzerland. Its two largest production locations are in Switzerland (Rapperswil) and the Netherlands (Enschede).
The Graf Group is a technology and market leader engaged in developing, manufacturing and marketing card clothing, combs and clothing for combing machinery as well as service machines for various spinning processes in the staple fiber sector worldwide. Clothing sets are wearing components and have to be replaced periodically. The company also occupies a strong position as a component manufacturer for the nonwovens sector. Graf's customers include spinning machinery manufacturers and spinning mills. The group has long been a valued supplier of key components to Rieter, and Rieter Textile Systems has maintained a successful technology partnership with the group for some years.
Hogra Holding AG is based in Freienbach, Switzerland, and is wholly owned by Ralph A. Graf, who has successfully managed this family-controlled company since 1978. The parties have agreed not to disclose the purchase price. Rieter will acquire the Graf Group retrospectively as of July 1, 2005.
With this acquisition Rieter will further augment its leading position as a supplier of technology components and will exploit the potential for innovation more effectively together with Graf. The components sector is less exposed than the textile machinery business to the demand cycles characteristic of the industry and thus contributes to a more continuous trend of business.
Rieter is an internationally oriented technology group engaged in developing and producing sophisticated systems solutions for the textile and automotive industries. In the 2004 financial year Rieter generated sales of 3 171 million CHF with some 13 500 employees worldwide. The Textile Systems Division accounted for 1 176 million CHF and the Automotive Systems Division for 1 979 million CHF of this total.
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Rieter Management AG
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